What is missing most with financial advice?
There’s an old Wall Street adage:
You are only as good as your last trade 📈 💲.
Put another way: “What have you done for me lately?”
There are 3 problems with this behavior when it comes to investing and your career:
- It makes it difficult to balance short term with a long term strategy
- It incentivizes you to take too little risk (you can be right on a trade but it’s a small bet so it doesn’t make much of a difference) or
- It incentives you to make a big bet (if you blow up you can always go to another firm or company)
When it comes to #investing, overconfidence can put you out of business.
- I know several guys who blew up and they got fired and
- I know several guys who go from one firm to another every 1 to 2 years because they can’t make money.
When I transitioned to becoming an #advisor and not just a short term investor, I learned that there was an intersection when it comes to investing and advising:
As an advisor,
- we can focus 🔎 on our relationships with clients.
Long-term relationships are more important than performance.
(I mean investment performance 📈, of course).
- The stock market isn’t always going to be on fire 🔥 and we can’t control the market.
- We can manage risk, stay diversified.
This is where the real power and magic happens.
What is missing most with #financialadvise?
A recent email from a friend, "it's comforting to know there is a path forward for [her] that doesn't include being "poor" and [she has] some control over how things turn out financially."
If you know anyone who is in transition (divorce, selling a business, death of a loved one), please make an introduction. Email me at Tiffany@wealthengagement.com or book a call!
Happy Thanksgiving! Appreciate our health, wealth and friends!