Never Chase Financial Returns

Happy New Year! This month, I’d like to highlight the following:

• Read: A new year provides us with an opportunity to reflect on our accomplishments (and any missteps) and resolve to start afresh. Whether you make New Year’s resolutions or not, here is one resolution worth keeping: Never chase returns. This article from Morningstar shows how investors who chase performance as the market moves up and down often end up underperforming for the long term. Your comfort with risk is an important consideration in your plan, and the “Rebalancing Matters” chart will show you how rebalancing your portfolio can help keep your investments at your desired risk level.
• Listen: This month’s podcasts focus on optimizing life more than optimizing wealth, a point not emphasized enough in the financial planning industry. One is a brief Christmas message from Jesse Mecham, founder of YNAB, and the other is from Tim Ferriss on Making the Most of Our Lives.
• Watch: This short text-to-movie video highlights “A Day in the Life of a Financial Advisor“. I hope you enjoy the light-hearted humor!