Thinking Forward – Five Traits For Successful Investing

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Thinking Forward - Five Traits For Successful Investing

Post written by Bryan A. Sarff, CFP®, RFC | President and Personal Wealth Manager

The S&P 500 has been and will always be one of the greatest wealth creators in America. Over ten year periods, it has outperformed Bonds and Cash 71% of the time. Source: Jeremy Siegel’s book “Stocks for the Long Run” (Yes, I know it has underperformed occasionally, but for the most part it has been the big winner of wealth creation. Our company’s mission is to help more investors experience this wealth creation effect.)

Too many investors flee the market when it is falling and wait too long to get back in when it is gaining. We call this the sell low, buy high approach to a very disheartening life of investing. To be successful at investing, one must have five things: Faith, Patience, Discipline, Temperament, and a Coach.

The Five Traits For Successful Investing

Faith. Faith in the Future of America and the constant improvement in our country and the progress of man. Faith that the nightly news and much of the press is just noise. That the pessimistic focus of today will continue to be overtaken by the realistic optimism that has ruled the day for centuries. Faith that all declines in the stock market continue to remain temporary and the advance continues to remain permanent.

Patience. Patience to stay committed to your long-term investment plan. Even during difficult times in the market. Patience to trust the path you’ve chosen and to never give in to the four most devastating words for an investor “This time it’s different”. Patience to know that every time the market falls, that it almost always rebounds just as quickly.

Discipline. Discipline to invest on a regular basis. To never stop saving or reinvesting dividends. To always be a buyer in to our great stock market. Discipline to follow the rules of investing, to realize that there are no new rules, no get rich quick schemes. Discipline to continue to believe that dividends- the great engine of the stock market- will continue to compound at the annual rate of around 5%. (Yes you read that right. This is one of the greatest truths of the stock market that receives such little attention.)Discipline. Discipline to invest on a regular basis. To never stop saving or reinvesting dividends. To always be a buy into our great stock market. Discipline to follow the rules of investing, to realize that there are no new rules, no get rich quick schemes. Discipline to continue to believe that dividends- the great engine of the stock market- will continue to compound at the annual rate of around 5%. (Yes you read that right. This is one of the greatest truths of the stock market that receives such little attention.)

Temperament. Temperament to keep your cool. To resist the urge to chase the latest fad or innovative trends of investing. Temperament to approach investing without emotion, and knowing that if you don’t have the Temperament to invest, then hiring a coach to do it for you is the right call.

Coach. This is where we come in. You pay us to have Faith, Patience, Discipline, and Temperament for you. You pay us to counsel you when it seems like the markets are going against you and FEAR is rising-up inside of you to abandon ship. Or that GREED has taken over during a great bull run and suddenly your risk tolerance has sky-rocketed. We work for our clients as a Coach to hold you accountable to your long-term plan. To be a buffer between you and your money invested in the markets.

I’d love to hear your thoughts and opinion too. Email me bryan@RetireWithTrue.com to share your comments.

Keep Thinking Forward and have a great week!

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How Inflation Affects Fixed Investments

Christmas Cocoa

  • 1/2 cup sugar
  • 1/4 cup unsweetened baking cocoa
  • 1/3 cup water
  • 1/2 teaspoon ground cinnamon
  • 1/4 teaspoon ground nutmeg
  • 4 cups milk
  • Directions: In 2-quart saucepan, heat sugar, cocoa, water, cinnamon and nutmeg over low heat, stirring constantly, until mixture is smooth. Heat to boiling; reduce heat. Simmer 4 minutes, stirring constantly. Stir in milk. Heat over low heat until ready to serve. Optional: 1 ounce peppermint schnapps and/or marshmallows

    Recipe courtesy of Betty Crocker

Investment advice offered through TRUE Alpha Solutions, LLC dba TRUE Private Wealth Management, a registered investment advisor in the State of Kansas. For more information or to speak to one of our personal wealth managers call us at  (855) 653-8783 Toll-Free  (913) 653-8783 Local or  Click Here to Send an Email!
"Yesterday's the past. tomorrow's the future. Today is a gift. That's why it's called the present." - Bill Keane