The Financial Planning Blog
Your go-to financial planning and wealth management resource, whether you're just getting started or well on your way to a financially secure future.
When you think of the word “demons,” what comes to mind?
Have your investment results been generally expected, better than expected or worse than expected? Chances are the answer depends on how realistic your expectations were in the first place. If they’re unrealistic from the outset, you’re bound to feel disappointment and concern over your portfolio outcomes. This is not an uncommon experience for people who get caught up in the chaos of the Investors’ Dilemma, but with the right mindset, you can manage your expectations much more effectively.
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If you haven’t spent your life studying investing, you may not have a complete picture of all the costs associated with trading. In fact, these numbers are probably much higher than you think, with potential hidden costs of up to 5% of your portfolio every year. Between the explicit and implicit costs involved in every investment, it’s important to gain a complete understanding of these expenses. Ultimately, controlling your costs could make the difference between investment failure and success over the long term.
Throughout our childhood and early adulthood, we all subconsciously adopt beliefs, stories, attitudes and assumptions about money. These inner thoughts become our reality, and though we may not recognize it, they heavily influence many of our financial decisions throughout life. We often unknowingly make, spend and save money based on these internalized ideas, even when doing so may not serve us well. The good news? In a very specific way, we can recognize and overcome those money beliefs that hinder our ability to achieve financial goals.
What is investing peace of mind? It’s the confidence and security of knowing you can live the lifestyle you desire and also retire. If you’ve reached a point in your life where you want to get serious about your retirement, you may have a number of financial worries and concerns. Maybe you don’t feel knowledgeable enough about your options. Perhaps you’re nervous to make any significant investment decisions. It may even seem like you lack any real control over your own money.
It would be great if you could simply check on the status of your investments and know immediately whether they are progressing in line with your long-term financial goals. But the truth is analyzing the overall performance of your portfolio is much more complex. From yields and rate of return to capital gains and losses, tax implications, risk and inflation, there’s an array of significant factors that go into painting your full financial picture. So, what can you do to gain clarity on whether or not your investment portfolio is actually performing?