Midpack
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I shamelessly stole this from Bogleheads. Though there's nothing new that hasn't been shared here before, I thought some here might enjoy this 3 page summary of personal financial planning (link below).
The exec summary (with the essential fundamentals that are hardest to teach IME):
https://oncoursefp.com/images/Vectors%20June%2021%20final.pdf
The exec summary (with the essential fundamentals that are hardest to teach IME):
- Have a plan.
- Shun complexity and embrace simplicity.
- "Unfortunately, too many financial professionals make investing more complicated than necessary. Perhaps this is because complexity can act as a smokescreen that hides an advisor's lack of experience, confidence, or perspective." [IMO too many "financial professionals" go to great lengths to make clients think they can't possibly invest successfully themselves - and it works on most people, but it doesn't have to be true]
- "Unfortunately, too many financial professionals make investing more complicated than necessary. Perhaps this is because complexity can act as a smokescreen that hides an advisor's lack of experience, confidence, or perspective." [IMO too many "financial professionals" go to great lengths to make clients think they can't possibly invest successfully themselves - and it works on most people, but it doesn't have to be true]
- Diversification in and among asset classes is the cornerstone of good portfolio design.
- Be content with market equaling returns.
- Most stocks under perform the market.
- Understand the function of bonds in your portfolio.
- "If you seek greater return [than from bonds], don’t lower the credit quality of the bonds in your portfolio, increase your allocation to stocks."
- Investor behavior, not investment performance, determines long-term results.
- "Most investors are doomed to fail because in investing, temperament is more important than intellect. Studies reveal that the average investor receives only a fraction of the stock market’s long-term return because of emotional biases that lead to poor investment decisions." [As W Bernstein found out post 2008, even with his sophisticated wealthy clients]
- "Most investors are doomed to fail because in investing, temperament is more important than intellect. Studies reveal that the average investor receives only a fraction of the stock market’s long-term return because of emotional biases that lead to poor investment decisions." [As W Bernstein found out post 2008, even with his sophisticated wealthy clients]
- Don't chase past performance.
- Slow and steady wins the race.
- Shun market timing like Superman shunned kryptonite.
- "Sitting on your hands and not panicking when stocks are declining has proven to be one of the best, and most difficult, investment strategies."
- Ignore all stock market predictions.
- Ignore the daily noise on Wall Street.
- Ignore your neighbors.
https://oncoursefp.com/images/Vectors%20June%2021%20final.pdf
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