Why Are You Looking at Everyone Else?
This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend Reading
The ability to maintain a long-term focus on your investment portfolio does not come without its challenges.
READ THE ARTICLEAmidst the “noise” happening around you, it’s important to prioritize perspective over short-term performance, especially in these instances:
📌 Current Market Performance: 2024 has been a strong year for the markets. However, beating these indices as a stock-picker is challenging, with probabilities diminishing as portfolio diversification increases.
📌 The Power of Compounding: An annual return of eight percent, compounded over 30 years, can multiply an initial investment tenfold. This highlights the value of staying invested rather than chasing unrealistic gains.
📌 Your Investing Mindset: Envy and comparison are amplified in the digital age but can detract from sound investing principles. Different risk appetites lead to varied return profiles, and consistent, disciplined approaches often outperform erratic, high-risk strategies.
📌 Return Profiles and Volatility: Author Conor Mac uses charts to illustrate that different paths (steady, volatile, or spiked returns) can achieve the same long-term result.
📌 Think of Investing as a Learning Opportunity: Investing is more than just returns; it offers personal growth, knowledge, and satisfaction.
Key Takeaways: Your pursuit of long-term growth and learning is more valuable than chasing fleeting returns or trends. Investing success should be judged over decades; requiring discipline, patience, and focus on personal goals rather than comparisons.