There's an old saying that "If you want the right answers, you must first ask the right questions."
Two often, I see people seeking the solution without asking the questions required to get there.
Here are 20 Must Answer Questions for Your Journey Toward Investing*
1. Have you discovered your True Purpose for Money™, that which is more important than money itself? |
2. Are you invested in the market? |
3. Do you know how markets work? |
4. Have you defined your investment philosophy? |
5. Have you identified your personal risk tolerance? |
6. Do you know how to measure diversification in your portfolio? |
7. Do you consistently and predictably achieve market returns? |
8. Have you measured the total amount of commissions and costs in your portfolio? |
9. Do you know where you fall on the Markowitz Efficient Frontier? |
10. When it comes to building your investment portfolio, do you know exactly what you are doing and why? |
11. Are you working with a financial coach versus a financial planner? |
12. Do you have a customized lifelong game plan to guide all your investing and spending decisions? |
13. Do you have a personal investment policy statement? |
14. Have you devised a clear-cut method for measuring the success or failure of your portfolio? |
15. Do you fully understand the implications and applications of diversification in your portfolio? |
16. Do you have a system to measure portfolio volatility? |
17. Are you aware of the costs associated with purchasing commission based products? |
18. Do you know the three warning signs that you may be speculating with your money versus prudently investing it? |
19. Can you identify the cultural messages and personal mind-sets about money that destroy your investing peace of mind? |
20. Are you ready to shift your personal experience of money and investing from a scarcity mode to an abundance mode – where you can live your life rather than obsess about your assets? |
When you have achieved the ability to answer “Yes” to all these questions,
you will be on your way to a higher level of financial confidence.
If you need help in answering, don't be surprised. Wall Street does a poor job of educating investors. Call me if you would like more info on how to get the answers to these questions.
*20 Must Answer Questions used with permission from Matson Money, a Registered Investment Advisor.