When you invest your money, you can choose between thousands of fund managers, thousands of funds, thousands of advisers…so how do you know who to trust?
Do you just hope? Do you take the view similar to the monkey throwing darts?
If you don’t have a clear process of being able to answer this $64,000 question, you are relying on luck. Is that a way to allocate your capital for your future?
The one major problem facing investors is the lack of a process to make good financial decisions. Why is that? It’s like hiring a cook. If you hire a cook you don’t need to think about how to cook; it’s done for you. When you taste it, you know immediately if you like it or not. Its called a feedback loop. Yet when it comes to investing, a feedback loop can be 10 years, 20 years, a lifetime or never. It means you need to know how to ‘cook’. For most investors, everyone will say they know how to ‘cook’, and whilst that may be true, but if their knowledge is ever tested and challenged, that’s when you know. Therefore a process is vital. A feedback loop is vital. No if’s or buts. Vital for making good financial decisions.
Explain your process to us and be challenged.