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3 Investment Beliefs That Will Hurt You
Not all investment loses are monetary.
Today’s article covers two financial mistakes that will waste your time and create unnecessary stress. As well as one classic mishap that costs you money.
Let’s start with a time-wasting stressor that everyone should avoid…
1. Worrying About Short-Term Events
Knowing about current trends and upcoming events is incredibly helpful — if you’re trading.
For passive index fund investors, it’s a waste of time.
Yet numerous 401(k) and retirement investors panic over temporary situations. If you have a time horizon spanning decades, and you’re holding broad-market index funds, there’s no reason to check your portfolio daily or worry about “the market” on a short-term basis.
The major benefit to passive investing is its “buy-and-forget” nature.
Indexes like the S&P 500 or Dow Jones go up and to the right, long-term. If you’re only holding these fund and have years of time before you’ll need the money in them, there’s absolutely no reason to work yourself up over daily; monthly; or even yearly performance.
