My “Common Sense” Approach To Retirement Investing.
I believe the most important things in life aren’t things. When measuring the success of a life, the riches found in family, friends and faith is a much better yardstick than the size of an investment portfolio.
What people really desire is to live a life of meaning and purpose with the freedom to invest themselves in the values that matter most to them, without having to be distracted by financial concerns.
That’s where Common Sense Advisors come in. I help people in their 50’s and 60’s successfully manage their money in a way that fits with their values and gives them peace of mind so they can concentrate on more meaningful pursuits. Our clients have discovered an entirely new way to invest.
A way that can erase the frustrations they’ve experienced in the past, greatly reduce their investment risk, simplify their finances, and provide the income they need, all in a refreshingly open and honest relationship.
There are a few basic principles that are consistently applied by successful investors that are core to our overall approach.
What Successful People Do.
1. The Livability Factor.
Successful investors recognize that you have to be able to stay in the game so you can be there when the profits occur. This may sound simple, but it really isn’t. I call this the Livability Factor. We all are uncomfortable when we start to lose money. At some point we will throw up our hands and say “Enough is enough!” and we get out of the market.
It’s unusual for someone that has experienced that to get back in the market at the right time. Successful investors understand the importance of rigorously controlling losses because doing so is the only way an investor can remain comfortable and stay in the game.
2. No Wall Street.
Successful investors don’t turn to the Wall Street System for advice. They aren’t glued to CNBC or Bloomberg all day. They realize that the focus of the Wall Street System is self-preservation. Media ‘reporters’ have to create emotion so people keep watching.
More people watch when there is a crisis and there’s always something going on in the world that can be spun into a crisis. When the markets are down, they need you to be afraid. When they’re up they encourage Greed. Of course that benefits their ‘guests’ that just happen to be the mutual funds that are pitched by salespeople as the solution to each crisis.
3. Recognize The Long-Term.
Successful investors recognize that, long-term, a repeatable process is needed in order to produce predictable results. Obviously, they can’t foresee future events, but they can (and do) develop multiple strategies—each designed to work best in a certain type of market. That way, they can determine the type of market in process and apply the appropriate strategy.
4. Conservative Vs. Aggressive.
Successful investors realize that there are going to be losing trades and they set their expectations accordingly. They realize there are going to be times when they should be conservative and other times they need to be aggressive. Their testing provides statistics that help them know if the strategy is performing within expectations. If it is, they keep using it. If it’s not, they don’t.
5. Types Of Investments.
Successful investors don’t limit themselves to certain markets in certain parts of the world. Depending on market cycles, some investment types such as options or futures perform better than stocks and bonds. There are times when it is better to be invested domestically and times it is better to be invested globally.
In the same way they develop strategies designed for certain market conditions, they also design systems that spot those market conditions when they occur in any type of market around the world. That way, they are not limited solely by what happens in the United States.
6. Limiting The Number.
Successful investors limit the number of clients they have and the amount of money they manage because they realize that the more a strategy is used the less effective it will be. That’s why it is virtually impossible for mutual funds to employ this approach.
I admit that it is very difficult for an individual investor to replicate what successful investors do. And, unfortunately, the investment required by many of the large successful investors is beyond what the average investor has—assuming they are even taking new clients.
I have spent over 25,000 hours researching, designing, testing and applying these trading strategies so that our clients can reap the benefits enjoyed by successful investors. I know that in order for me to continue to deliver results that our focus has to remain on the money management aspect of the business as opposed to client acquisition.
And I will limit the number of clients (or the amount I manage) so the effectiveness of our strategies is not hindered.
Nor can I take on a lot of new clients at any one time because one, the majority of our time is spent managing our existing clients money and second, because I spend considerable time initially with each client so that we both are on the same track.
If you are tired of being frustrated trying to invest by the Wall Street’s System rules; if you’re tired of being on an emotional roller-coaster and constantly worrying about your finances and would like to feel good about your situation so you can spend more time focusing on the things that are more important to you than money, then Click Here!
Learn more about my Private Wealth Management System and Approach here.