ABC’s of Successful Investing

ABC’s of Successful Investing

As the kids have gone back to school, it is a good time to review the ABCs of successful investing.

A – Adjust Your Expectations

Expect that stock market selloffs, which are normal, will occur quite regularly – it’s just the nature of beast. But historically the losses have been temporary. Some losses have been greater than others, but the markets have historically generated significant wealth for patient investors.

During those selloffs, expect to feel anxious and maybe fearful, but that doesn’t mean you act on it. And that brings us to the Bs of investing.

B – Behave Rationally

One of the best ways to do that is to temper our emotions and desire to respond immediately. This isn’t easy, but essential to making wise financial decisions.

Ignoring the financial media, complete with its forecasts and focus on short-term outcomes will make it easier to behave rationally.

Finally, consult with me. Together we can ensure decisions are mindful, free of emotions, and in line with your goals. And that brings us to the Cs of investing.

C – Cling to Your Plan

Your plan has been customized. It is your personal road map. The plan accounts for down markets and temporary losses – so a down market is not an indication you are off course.

Due to the uncertainty of markets, how quickly they can change, and how they often surprise us, clinging to your plan provides the best chance that you will reach your goals, despite the occasional setbacks.

Stay invested,

– Kaleb Paddock, CFP®

Learn More

You can learn more about Ten Talents and Kaleb Paddock, a financial advisor based in Parker, Colorado, by clicking here.

Kaleb can be reached at (720) 710-0939 or kaleb@tentalentsfp.com.

You can check out the Ten Talents YouTube channel by clicking here.

© Behavioral Finance Network