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What if investment returns don’t matter all that much? Crazy huh? I don’t think so. Sure, accessing reasonable returns above inflation is a worthy aim but should not be the primary focus for most individuals.
Those who insist on a myopic view of the financial world through the lens of investment returns are often perpetually unhappy. Always trying to maximize returns overshadows everything else when it’s everything else that truly matters.
Constantly tinkering with your investments likely won’t improve your returns…in fact, research shows just the opposite. My experience is that a focus only on returns happens for two reasons: 1. You haven’t saved enough or 2. You don’t believe there ever is enough.
Reality based financial planning undergirds the behavior needed to build a workable and balanced financial life. Reality based planning brings you face to face with being wrong and being surprised from time to time.
A plan that adjusts to ever changing reality helps you stay in your seat and avoid chasing returns. A better plan trumps better returns in the long run.
Trying to maximize investment returns isn’t sustainable. Plan, invest, sit tight, and adjust based on new reality. We are here if you want to talk. We are here if you want to talk. Stay well.
Related: What Can We Learn About Investing From the Coronavirus?