Why your investment strategy should be boring

Investing is a vital part of financial success. Your net worth will grow exponentially and set you up for the future.
Many people patiently get a degree and work hard and dedicate years to building a good income, but they show no patience when investing.
They’re getting closer to reaching their dreams, and start looking for shortcuts and end up sabotaging themselves.

Your investment strategy should be boring, and here is why.
In order to make money to invest, you first have to work hard to earn an income.
That already takes up most of your effort, especially as you get older. You cannot work all day long, and you have to accept that you cannot put the same amount of energy into investing that you do into your job.
Your work income is still your main income. Investment income should be a supplement.

If you were to spend years learning how to day trade, flip houses, or speculate in the gold market, you might be able to make more money than you do at your regular job.
But this requires expertise almost nobody has. Accept that you do not know as much about investments as you do about your profession, and invest passively instead.
By not spending much time on your investments, you free up more time to focus on work and actually earn money.

These simple investments are the traditional ones. The stock market requires virtually no effort. Gold, bonds, REITs, also require little effort.
Buying and renting out real estate is not passive, though it is manageable. Stick to methods that have withstood the test of time, that do not demand constant attention, so you can focus on what you do best, which is generating income.

There are ways to make more than 10 percent.
There are investments that generate higher returns than the 10 percent you will roughly earn in the stock market each year. But they require so much work and expertise that in chasing those high returns, you would sacrifice your regular income.

Then there is the element of stress, especially as you get older and have built up more money.
Cutting down on stressful activities helps you keep going. If you have to micromanage every detail of your portfolio on top of your job, you will be overwhelmed. And then you will need to make more money to pay for an expensive vacation just to recover.

Boring investments also protect you from your own emotions.
When markets move quickly, it is tempting to jump in and out, to chase opportunities, or to panic when prices dip.
History shows that investors who make frequent emotional decisions underperform those who simply stay invested in a stable, long-term strategy.

By keeping your investments boring, diversified, and low-maintenance, you reduce the temptation to act on fear or greed.
The less excitement you bring into investing, the fewer costly mistakes you will make, and the more consistent your long-term results will be.
Let your investments grow while you sleep. If you have to micromanage it, you will not have time to sleep.

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