Successful Investing Requires a Long-Term Perspective

Rick Irwin |

The investing process is perhaps one of the most fear-inducing, frustrating, thrilling and sometimes seemingly complex activities we as humans can engage in. Just as the marathon runner doesn't quit at the first hill they come across, or the 10th, we need to remain focused on the long term, especially in a world of 24/7 media coverage where financial predictions are a dime a dozen.

It's important to consider that the human brain is hard-wired to fear short-term pain or loss more than to anticipate long-term reward. This same short-term focus can often lead investors to gravitate towards seeking to replicate the recent dramatic gains of others in anticipation of similar easy profits rather than adopting the patience of a long-term focus on fundamentals. Being fearful when you should see opportunity and being overly opportunistic when you should be cautious; we can sometimes be our own worst enemies when investing. While investment returns are not guaranteed, the actual path to investment success needn't be that difficult. The key is to adhere to the simple principles of having a proper plan in place in the first place, aligning your investments inside of a risk framework that will help you reach your goals while allowing you to sleep well at night and not being distracted by short term "noise."

Financial advisors generally do a good job advising clients to stay the course during periods of market uncertainty. We can also help you take an even longer-term perspective: focusing on the role your retirement savings will have later in enriching your lives or those of your family or the broader community. 

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was produced by Advisor Stream for the benefit of Rick Irwin, Financial Advisor at Trinity Wealth Partners, a registered trade name with Investia Financial Services Inc. The information contained in this article does not necessarily reflect the opinion of Investia Financial Services Inc. and comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities.
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