Investing according to your goals
We came across an excellent article that emphasizes the importance of individuals investing according to THEIR goals. This is a point we like to consistently make with clients, as well as company employees we speak to through our non-profit workshops. Unfortunately, too many people do not invest according to their goals and put their long-term plans in serious jeopardy. If you are not investing according to your goals you tend to "chase the market". That is, when the stock market is doing well and hitting highs you decide you want to be more aggressive and make more money. When the stock market is hitting lows you decide you do not want to take more losses and you become very conservative. Investing according to your goals keeps you grounded and minimizes emotional financial decision making, which is something that rarely ends well.
We encourage you to click on the article, it is a quick read and well worth your time. Below is an excerpt, as well as the link:
When we make investment decisions, they should be tied to our goals. We get into big trouble when we either:
a) Fail to get clear about our goals b) Invest based on someone else's goals
For more click here:
http://bucks.blogs.nytimes.com/2012/12/24/dont-mistake-investing-folklore-for-personalized-advice/