Retire Smarter with Kevin Kroskey, CFP® & Tyler Emrick, CFA® CFP®
Business:Investing
Inevitably you will have some investments perform better than others in your portfolio. A normal, human response is to seek pleasure and avoid pain or sell the underperformer and buy what has done well. But does that make investing sense?
Listen to Kevin discuss critical concepts of diversification and probability and why process matters more than outcomes. Hear an example of this being applied in professional basketball and playing probabilities in blackjack.
In sticking to a good process, good outcomes are more likely to result. In focusing on outcomes, you are more at risk of stampeding over the cliff with the uninformed herd and wrecking retirement.
Check the four-part Your Investing Process Series, mentioned in this episode:
https://www.truewealthdesign.com/your-investing-process-part-1/
https://www.truewealthdesign.com/your-investing-process-part-2/
https://www.truewealthdesign.com/your-investing-process-part-3/
https://www.truewealthdesign.com/your-investing-process-part-4/
Timestamps:
0:43 - Defining Underperforming Investments
2:12 - Is The Investment Or Asset Class Underperforming?
4:32 - Metrics To Consider When Choosing Investments
6:57 - Getting Rid Of Underperforming Stocks
8:35 - Terminal Wealth Dispersion
12:32 - People Don't Invest Rationally
14:47 - Using Probability In Your Favor
20:38 - Planning For Different Outcomes
Contact:
True Wealth Design Website: http://www.truewealthdesign.com/
Call: 855-893-7526
Schedule: http://bit.ly/calltruewealth
Ep 47: Risks & Uncertainties in Pandemics & Retirement Planning
Ep 46: Rebalancing Your Portfolio: Why, How & Complexities to Overcome
Ep 45: Retire Smarter Solution™
Ep 44: Am I Going To Be Okay? Looking Back On A Client's Retirement Plan Execution In Light Of The Coronavirus
Ep 43: Financial Planning To-do's During Market Declines
Ep 42: This Is Not 2008
Ep 41: Coronavirus & Your Investment Strategy Part 2
Ep 40: Coronavirus & Your Investment Strategy Part 1
Ep 39: IRA Owners: 3 Key Changes By The SECURE Act
Ep 38: Pension Lump Sum or Monthly Payment?
Ep 37: The Story of Sue
Ep 36: Snowbirds: Documenting Ohio Nonresidency
Ep 35: Snowbirds: 4 Financial Tips
Ep 34: Case Study: Tax-Smart Distribution Planning
Ep 33: Tax-Planning Framework
Ep 32: Top 10 Best Retirement Cities
Ep 31: The Details In A Tax-Smart Retirement Distribution Plan
Ep 30: Your Investing Process - Part 4
Ep 29: Your Investing Process - Part 3
Ep 28: Your Investing Process - Part 2
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