Our Investing Philosophy
By Robert Korljan*
Investors are simply confused by the multitude of choices—many of them contradictory—in seeking to build financial independence and overall peace of mind.
During my years of advising investors, teaching workshops, and hosting a radio show, I have realized that investors are uneasy about the way their money is being managed. Instead of knowledge, they have confusion; instead of joy, they have stress; instead of peace of mind, they are worried that they might be missing out. There is an increasing lack of confidence (well placed I might add) in brokerage firms and insurance companies. Investors simply don’t know where to turn.
When I first entered the financial planning industry, I joined a well-known professional association. After becoming a member of the investment committee, our task was to recommend investment choices for its members’ clients. I was honored to be invited and zealous to learn how to make wise investment decisions among the thousands of choices. What did I learn? I realized that investment research primarily consisted of looking at 1, 3 and 5-year track records of actively-managed mutual funds and poring over Morningstar reports. In the end, we picked investments based upon relatively recent performance history and subjective evaluations of where we thought the investments would go in subsequent years. Soon afterward, disillusioned, I left this investment committee and returned primarily to a tax planning practice. I knew that this type of investment “research,” so characteristic of the industry, would not be a reliable predictor of future market performance. Ultimately, it would fail the investors who were depending on our expertise. At the time, however, I just didn’t know what the right answers were.
Today, I call this kind of research—“shooting where the rabbit was.” It is one of the biggest mistakes investors can make-what we call “track record investing.” Stock picking, market timing, and track record investing are NOT prudent methods of investing; rather, they are more akin to gambling. These mistakes have doomed many an investor’s hopes.
[What we teach you] are best-practice strategies to investing that will take away your fears and give you the peace of mind that has evaded you thus far. You will be able to face the future with confidence that you will reach your goals with less risk.
I am sorry that my profession has failed investors far too often. The main problem is that we have not asked questions, we have not asked good questions, and we have not asked the right questions. Instead, we have made short-term rate of return the main criteria for our investment decisions.
Join me now and learn...what questions you need to ask, begin to take steps to answer them, and start building an investment strategy that will lead to growing confidence and hope.
To schedule a time to discuss your financial future, contact us or call us at 800-786-8128.
