1) I will not confuse entertainment with advice. I will acknowledge that the financial media is in the entertainment business and their message can compromise my long-term focus and discipline, leading me to make poor financial decisions. If necessary I will turn off CNBC and turn on ESPN or HGTV.
2) I will stop searching for tomorrow’s star money manager as there are no gurus. Capitalism will be my guru since capitalism provides a positive expected return on capital and it is there for the taking. For me to succeed, someone else does not have to fail.
3) I will not focus my portfolio in a few securities or even a few asset classes, as diversification remains the closest thing to a free lunch.
4) I will ensure my portfolio is appropriate for my goals and objectives while only taking risks worth taking.
5) I will manage my emotions by learning about and acknowledging the biases and cognitive errors that influence my behavior.
6) I will keep my cost of investing reasonable.
Additionally, Net Worth Advisory Group would like to recommend one other resolution for the list:
7) I will decide what is most important -- beating an investment benchmark or meeting my financial goals. If my portfolio lags a benchmark but I obtained my goals, I will be content that I likely reduced my investment risk but still achieved what I hoped to accomplish.
Most of us find it hard to follow a sensible diet or a sensible investment strategy 100% of the time. Just as successful athletes rely on coaches and trainers to help them achieve their goals, most investors can probably benefit from having a ‘financial coach’ to remind them about their resolutions and keep them on track toward a more prosperous future.
For more information, visit http://www.utahfinancialadvisor.blogspot.com.
About Mr. Jefferies
Lon Jefferies is an investment advisor representative with Net Worth Advisory Group, a fee-only financial planning firm in Salt Lake City, Utah. He is a member of the National Association of Personal Financial Advisors (NAPFA) and a candidate for CFP™ certification. He possesses an MBA and bachelor's degrees in Finance and Marketing from the University of Utah. Lon writes articles for local magazines such as Business Connect and Utah Business Magazine, and he consistently contributes articles to online magazines such as FIGuide.com and FILife.com (by The Wall Street Journal). Additionally, Lon is a platinum expert author at EzineArticles.com. Lon has been quoted nationally in publications such as the Wall Street Journal, the NY Times and Investment News.
View Lon's blog at http://www.utahfinancialadvisor.blogspot.com, and visit Net Worth Advisory Group's home page at http://networthadvice.com. Lon can be emailed at firstname.lastname@example.org, or phoned at (801) 566-0740.
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Fee-Only Financial Planner
Net Worth Advisory Group
6975 Union Park Center, Suite 465
Midvale, UT 84047