Why The Best Person To Manage Your Money Is You

Why The Best Person To Manage Your Money Is You

Why the​ Best Person To Manage Your Money is​ You
Self-Reliance is​ the​ Quickest Path to​ Financial Freedom
When I​ tell people that self-reliance is​ the​ quickest path to​ achieve financial freedom when it​ comes to​ investing, many people look at​ me like I'm crazy .​
In fact, I​ know a​ lot of​ people that told me they handed their money over to​ a​ firm after trying to​ manage their own portfolio and​ sustaining significant losses .​
But every person that had unsatisfactory results took the​ plunge without adequate preparation .​
They listened to​ the​ pundits on MSNBC, watched the​ Bloomberg Report, and​ read the​ Wall Street Journal and​ thought that they were sufficiently knowledgeable then to​ be great stock pickers.
They failed to​ seek out and​ truly learn how to​ invest properly and​ then failed to​ develop any type of​ investment system .​
Of course they were going to​ fail .​
Yet learning how to​ invest and​ make significant returns upward of​ 20% to​ 25% a​ year is​ not difficult at​ all.
It's either wrong choices about learning the​ wrong investment systems or​ laziness that causes the​ overwhelming majority of​ do-it-yourselfers to​ fail .​
But it​ doesn't need to​ be that way at​ all .​
There was an​ article in​ last month’s Economist that stated that the​ belief that more leisure time leads to​ increased happiness was a​ myth .​
Instead, the​ article revealed that people predominantly used excess leisure time to​ watch more TV rather than engage in​ any activity that really improved their outlook on life.
There was an​ article in​ the​ January, 2018 Economist that claimed the​ belief that more leisure time leads to​ increased happiness was a​ myth .​
Instead, the​ article revealed that people predominantly used excess leisure time to​ watch more TV rather than engage in​ any activity that really improved their quality of​ life.
However, I​ don’t agree with the​ conclusion of​ the​ Economist study .​
All it​ would take is​ a​ simple re-adjustment of​ perspective, I​ believe, to​ change that conclusion .​
For example, if​ it​ was mandated that people could not use their extra leisure time to​ watch TV but must engage in​ activities that require human interaction, then more people would have dinner with their friends, go to​ a​ play, concert or​ sporting event, enjoy a​ pick-up basketball game with their kids, and​ so on .​
I​ guarantee you that the​ study would conclude something different if​ this were the​ case .​
It’s just a​ matter of​ taking personal responsibility for​ one’s happiness.
In investing, the​ same rules apply .​
I’ve read and​ heard way too many stories where people’s retirements were ruined because they handed their money over to​ another person at​ an​ investment firm .​
As the​ financial consultant proceeded to​ lose all of​ the​ client's money, he or​ she continuously told the​ client not to​ worry because stock markets go down but always come back while never once admitting that the​ loses were due to​ poor decisions .​
By the​ time these clients finally decided to​ pull their accounts, many times they had already lost USD $500,000 or​ more .​
I’m not really sure why people are willing to​ work so hard to​ save so much money but yet so cavalierly give their money to​ someone else to​ invest for​ them .​
But they do.
If you take charge of​ your own investment life, I​ guarantee you that your results will be better than you ever could have imagined.
They might not improve right away, but over time, they will .​
Remember, this is​ a​ lifelong investment you will be making so you must give yourself a​ couple of​ years to​ judge the​ returns of​ your efforts .​
In order to​ achieve exceptional results, there are no shortcuts .​
In investing, however, people seek shortcuts all the​ time.
They pay thousands of​ dollars to​ newsletters to​ tell them exactly what stocks to​ buy and​ curse them when they lose money .​
They pay tens of​ thousands of​ dollars to​ their financial consultants every year and​ curse them when they lose them money .​
It is​ quite odd to​ me that the​ most controlling of​ people that will pour their hearts and​ souls into their careers and​ work extra hours because they do not trust their co-workers to​ do the​ job right, will turn around and​ so easily concede control of​ the​ management of​ the​ wealth that they worked so hard to​ create.
Many times I​ hear people claim, I​ don’t know anything about investing, so I’m going to​ let the​ experts handle it, and​ consequently hand their money to​ Merrill Lynch, UBS, or​ Goldman Sachs to​ manage .​
This notion is​ just plain silly for​ two reasons .​
Consider that most people have undergone at​ least 12 years of​ schooling .​
The most important class you could have ever taken during those 12 years would have been one about creating wealth and​ investing, but since no traditional institutions of​ education offer such a​ class, you must be willing to​ take one additional class to​ secure the​ rest of​ your financial life.
If we consider the​ fact that a​ the​ hours of​ a​ 16 week college class that met four days a​ week for​ 1.5 hours a​ class, or​ 96 hours of​ learning, is​ probably sufficient to​ set one on the​ path to​ significantly greater financial returns, it’s just plain silly that the​ overwhelming number of​ people make excuses that they just don’t have this kind of​ time.
The second reason this notion is​ so silly is​ that most likely, your financial consultant and​ the​ money manager he or​ she utilizes barely know more about investing than you do .​
98% of​ money managers peg their portfolio to​ the​ major domestic index in​ their country, so this is​ something you could do in​ your sleep .​
Next time you meet with your financial consultant, take several hours before the​ meeting to​ study the​ global economy and​ use your knowledge to​ seize control of​ the​ conversation.
Ask what are the​ best asset classes for​ 2018 and​ why .​
Ask what emerging nations in​ the​ Middle East and​ Russia are likely to​ do with their massive petrodollar surpluses and​ how their actions are likely to​ move global markets .​
Ask them about the​ dynamics of​ the​ dollar, Euro, and​ pound sterling currency markets and​ how this influences how your portfolio is​ allocated .​
Most people don’t realize how little their financial consultants really know because they don’t know the​ right questions to​ ask.
Consider this .​
How many clients does your financial consultant have? 50? 100? 300? if​ you still think that you don’t have the​ time to​ learn, consider that your consultant most likely doesn’t have much time for​ you either .​
If you really want to​ make progress with your financial future, it​ is​ up to​ you to​ find the​ time .​
Several thousand or​ even several hundred dollars invested in​ courses and​ education that will teach you how to​ invest is​ money much better spent than paying tens of​ thousands of​ dollars in​ fees year after year after year to​ someone merely to​ achieve mediocre returns.
And what’s my advice for​ the​ type of​ courses/ books you should seek? With the​ increasing accessibility to​ information that is​ highly correlated to​ significant returns, I​ would most definitely concentrate on the​ longtail of​ investment strategies – those strategies that have evolved with the​ evolving information landscape and​ technology to​ leverage information to​ identify stocks best poised to​ explode higher versus outdated traditional fundamental and​ value investing strategies .​
That would be a​ good place to​ start.
Most people who try to​ do it​ themselves invest on a​ hot stock tip from their friend or​ from an​ unqualified financial consultant .​
Then when they lose money, they tell themselves it's much better to​ allow someone else to​ handle their money .​
However,that's because they never took the​ time to​ learn a​ proper investment system before making the​ plunge into the​ global stock markets .​
Learn a​ proper system first and​ you'll be well on your way to​ establishing financial freedom.

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