Investing for a Long Time, Not a Good Time
In this episode, Rachelle and Corey use a LOT of metaphors to explore the idea that investing for long-term growth should be boring! This isn’t a game; it’s trying to achieve your goals (like having enough money when you retire) without taking on unnecessary and often unsuccessful risks.
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Our favorite metaphor:
- Did you know that Greenland sharks have a life expectancy of 250-500 years?!
- They grow very slowly, live in cold water, and are more or less immune to most cancers and diseases.
- Definitely a slow and steady wins the race creature!
Applying this to investing:
- When you invest for exciting returns in the short-term, you win some and you lose some. Not usually the best results when you do that over a long period of time.
- More exciting = more risky
- Taking a well-diversified approach does not usually result in “exciting” returns. Sometimes your portfolio goes up a bit, sometimes it goes down. But it gives you the best change of “good enough” returns over a long period of time.
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- Less exiting = less risky
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Sometimes folks think investing is glamorous; but if you’re doing it right, it’s more like the Greenland shark.
For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance
Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.