investing principles for success

A google search for the word principle provides this definition; a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.

 

In my business of providing financial advice I find that having core principles is a great way to help make wise financial decisions. Our finances are largely influenced by our behaviors and emotions, so even if you have the head knowledge it can be easy to get in your own way. I’ve developed Financial Principles and Investing Principles and often refer to them in the plans and investment strategies I create.

 

Charles Schwab agrees with having principles for investing and I recently came across an article of their 7 Investing Principles. I have listed each Schwab principle under what I believe is my corresponding principal. Note, I’ve sought to base my principles on biblical wisdom and have listed some verses for reference.

 

Maintain broad diversification – Ecclesiastes 11:2

 

- Build a diversified portfolio based on your tolerance for risk

- Build in protection against significant losses

 

Align your investments with your objectives – Proverbs 13:16, 24:27

 

- Establish a financial plan based on your goals

 

Don’t let fear or greed drive your decisions – Hebrews 13:5, Luke 12:15, 1 Timothy 6:9-10

 

- Ignore the noise

 

Be disciplined and consistent – Proverbs 13:11, 14:29, 21:5

 

- Start saving and investing today

- Rebalance your portfolio regularly

 

Consider taxes and fees – Matthew 22:21

 

- Minimize fees and taxes

 

People often manage their money in a reactive way rather than being proactive and purposeful. I’ve seen millions of dollars lost or unrealized due to violating or not having principles such as those above. What are the principles that guide your investment strategy? 

 

 

 

Advisory services offered through Arbor Point Advisors. Securities offered through Securities America Inc., Member FINRA/SIPC. Arbor Point and Securities America are separate companies. CA Insurance #0E88557

Retirement Planner in San Diego

 

Advisory services offered through Arbor Point Advisors. Securities offered through Securities America, Inc., Member FINRA/SIPC. Arbor Point Advisors and Securities America are separate companies. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. CA Insurance #0E88557

Advisory services offered through Arbor Point Advisors. Securities offered through Securities America, Inc., Member FINRA/SIPC. Arbor Point Advisors and Securities America are separate companies. This site is published for residents of the United States and is for informational purposes only and does not constitute an offer to sell or solicitation of an offer to buy any security or product that may be referenced herein. Persons mentioned on this website may only offer services and transact business and/or respond to inquiries in states or jurisdictions in which they have been properly registered or are exempt from registration. Not all products and services referenced on this site are available in every state, jurisdiction or from every person listed. CA Insurance #0E88557​

Rancho Bernardo Financial Planner