As one goes through a career, you accumulate wisdom from others and sometimes you create a few pearls yourself. In Part 1 of 25 Lessons Learned Over 50 Years (link to previous blog) we shared the first twelve pieces of wisdom to ponder as you think about financial planning, goal setting, saving, and investment management. Here are the next thirteen.

  1. The time to sell is when you no longer think it is time to buy because the investment has become too expensive.
  2. Be disciplined in your decision-making with your serious money. If you want to gamble, roll the dice in Las Vegas; not in your portfolio or other ports of your financial plan.
  3. Whatever the small retail investor is doing, do the opposite. Uninformed naive investors rarely get it right in the end.
  4. Even the best money manager will get it wrong at least two or three times over ten years. Judge the long-term results, not the year-to-year return.
  5. Last year’s winners are rarely this year’s winners. If you do not see future winners in your investments, then sell despite capital gain taxes.
  6. Wealth comes not from great investments, although they do not hurt, but more from spending less than you make. Save ten percent of what you make at a minimum.
  7. Finance assets that appreciate and pay cash for assets that depreciate.
  8. Do not fight the Fed.
  9. Like chocolate, a little inflation is good for you. Like a poisonous snake, deflation is never good for you.
  10. Nothing is forever no matter how good it was in the past or it is today. You should always be thinking about tomorrow while enjoying today.
  11. Set realistic financial goals and when you achieve one … reward yourself and celebrate!
  12. Companies that innovate outlast those that do not. If you are not growing you are dying, you just do not know it.
  13. If you do not have the time, inclination, and knowledge to manage your financial planning and investments hire a professional. They are an investment, not an expense.

If you have others to add to the list, please send them to Ferrara@Provise.com. We always offer a complimentary consultation in either our Tampa or Clearwater office or by Zoom. Do not pass up a good opportunity.