First. Click Play. Then Continue Reading as you listen to greatness!
Did that? Good.
Now let me ask you a question… how much do you know about investing? A lot. a little. Nothing.
4 years ago I knew nothing about investing.
3 years ago i knew ALMOST nothing about investing.
Today I know a lot more but I still have no clue about a ton of it.
- I couldn’t even begin to tell you how a derivative works.
- The minute you say CDO or mortgage-backed security I begin to fall asleep.
- I don’t understand how FX movement affects commodity prices (and hopefully never will.)
- And I don’t know the first thing about stock picking
(So if you are looking for information on any of those things, you have come to the wrong place.)
Have you ever noticed how almost nothing matters in life?
Seriously…Stop and think for a minute. I bet you can count on one hand the things that, at the end of the day, actually matter to you.
And yet we are constantly distracted. And we accept the lie that busyness equals productivity and meaning.
Some of it is just the nature of the world we live in. But that doesn’t change the fact that the vast majority of things that grab and get our attention don’t matter AT ALL!
The same is true for our money. Whether it’s personal finance or investing, there are few things that actually matter.
Only three things matter.
And we shouldn’t concern ourselves with anything except these three things.
But instead we find ourselves worrying about all kinds of ‘stuff’ like:
- What the market did yesterday
- What the market will do today, tomorrow or 2 years from now
- What CNBC says
- That latest corporate earnings report
- What you’re colleague, co-worker, family member says
- etc., etc., etc.
And all of this worrying, contemplating, thinking leads us to become overwhelmed.
And when we get overwhelmed we become crippled, begin to feel like we don’t know enough, and end up doing…NOTHING!
Which brings us to today!
And today we’re going to take the myths you’ve been told and THROW ‘EM ON THE GROUND Andy Samberg style.
(By the way… Are you still listening? Are you Blown Away Yet???!!!)
Remember I said there were only three things that mattered with investing?
Well here they are:
- Contribution – how much you are contributing into your investment accounts
- Cost – how much you are paying in fees (to both your advisor and in your investment accounts)
- Cut – Think of your investments as a pie (maybe boysenberry. or maybe not) How big is the stock slice of your pie? How big is the bond slice?
So don’t get bogged down by the cess-pool of financial pornography that dominates the news cycles.
Instead, focus on what matters. And stop paying attention to everything else!
Question: Do you know the answer to each of the three elements discussed above for your portfolio? If not, which one do you need to find out? Leave a comment below.