WHERE DO RETURNS COME FROM? A FUND MANAGER OR THE MARKET?

by brendon on July 12, 2013

WHERE DO RETURNS COME FROM?

Kansas City and Overland Park investors need investment advice that leads to increased returns and greater peace of mind.   Managing your own behavior when it comes to investing is impossible by asking the wrong questions.  That’s why as an Investor Coach I spend time coaching people to ASK BETTER QUESTIONS, like the one above!

Stock markets go up and down—we know this for certain.   The quality of your life will improve when you ask the right questions.   So, the next time you become anxious about a downturn in the market, ask “WHERE DO RETURNS COME FROM?” and think about how you’re currently investing in the market.

Returns don’t come from money managers or advisors.   THEY COME FROM THE MARKET.  Three simple keys to investing:  own equities long term, be diversified and rebalance.

Another thing we know for certain is that the debate over using ACTIVE MANAGEMENT or PASSIVE MANAGEMENT philosophies will certainly last forever.   If you or your current advisor are moving $$ in and out of the market based on short term events—you’re market timing.  Don’t do this.    You’ll never consistently add value to your portfolio this way.

You might ask—“how about the professional money managers?”  Look at the results and you’ll see they’re not good.   CLICK HERE.  Over short and long periods of time, you’ll quickly learn you can’t attribute an investment manager’s performance to luck or skill.    Making matters worse—it’s impossible to forecast or predict which manager will have the best returns looking forward.

Active-Managers-fail-to-beat-benchmark-The-Investment-Answer-Bonus-April-2011-2[1]

Owning what we call “structured asset-class” portfolios is the key to capturing maximum returns from the market with optimally low amounts of cost.     Working with an Investor Coach helps to eliminate negative activities like market-timing, stock pick and track-record investing (looking at past performance to determine and investment selection).

Contact Wealth Renovators, LLC to receive an invite to the next Investor Education workshop.

 

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