If you look at your lifespan, it more closely resembles a marathon rather than a 100-yard dash.
Keeping this view in mind, you should aim for an investment strategy that allows you to accomplish everything that is important to you. You want to figure out what approach will enable you to get the returns you need with the least risk.
The easy access to financial news 24/7 has prompted more and more investors to focus on the short term.
Much of what you see and hear about is aimed at making a quick profit often from day trading and market timing—which is especially dodgy for most investors.
You need to focus on the marathon.
What are your long-term goals?
What rate of return on your investments would you need to accomplish them?
The key to investment success is consistent returns over time. This is easier said then done.
Ideally, you want to:
- Keep losses to a minimum.
- Place greater value on consistent returns over time.
Keep these principles in mind the next time you hear a friend touting the latest hot stock or you read about some new investment idea.
Remember, true financial success means that you have an ongoing stream of income that you never outlive, no matter how long you live and regardless of the rate of inflation.
See how our investment system actually performs and what we are telling our clients about the financial markets in our Quarterly Market Review.