Nobody likes salty cookies. Well, maybe salted caramel, but that’s a special circumstance. Have you ever put on pants you found in the back of your closet? Most likely you outgrew them, and they, hopefully, became way too big. Having the right mixes and measurements is very important in order to have the best fit, batter, or asset mix. The right mix in your portfolio is crucial to achieving your financial goals. As life spans keep increasing, so do the total number of retirement withdraws. Remember, some of that money will stay in the account, and keep working for you even after retirement.
There are so many places to buy the same product nowadays. Take groceries for example. I can think of five stores off the top of my head that sell essentially the same products. How on earth do we decide where to go to get their groceries? Now let’s consider you’re a business looking to open a 401k plan for your employees, or simply someone looking for your own 401k. There are dozens of firms offering similar plans that can be made up of the same securities. So how do you decide?
Have you ever tried a kale chip? I hadn’t until the other day. A coworker had made some and insisted I try one. I was very resistant. I had no idea what kale was going to taste like, or even if they were a good cook. I only knew what had heard from others. That kale was bitter, gave you a bad after taste, or that the only reason to eat it was because you told to get healthier. That didn’t sound like anything I wanted to be a part of. Bottom line, the fear of the unknown was holding me back. You often hear that people are worried that they are not saving enough. What if you aren’t spending enough?
As a whole, the human race is impatient. We all prefer instant gratification to waiting forever in order to get something we want. Everyone wants the fastest internet, quickest weight loss results, or the shortest line at the grocery store. All of that might be well and good for those circumstances, but certainly not for investing. You must be patient with your investments. They should grow over time.