I recently read a good book entitled "The Behavior Gap" by Carl Richards and encourage you to read it. He writes that "...financial plans are useless...". Basically the author means that the "process" is vital but the "product" can be stagnant if it is based on a range of variables (no one knows for sure) combined with a long time period (that just compounds the inability to guess inflation rates, investment returns, etc.).
He uses cute "back of the napkin" simple charts that you can find at his website: http://www.behaviorgap.com
Here is an example quote from the book, "...decisions should be made on principles not on our feelings about what's going to happen...". The example he gives is someone who is unwilling to give up an investment that makes up too much of their portfolio. The principle: "...it is always a bad idea to have too much of your net worth wrapped up in a single investment..."
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.