“Discipline” is not a word that tends to make us feel warm and fuzzy. In fact, It is sometimes seen as negative.
It might make you think of being “grounded,” as a kid, of getting on the treadmill for a workout, of saying, “no” to that second helping of chocolate cake.
Is discipline a dirty word?
Discipline is the key to success in almost every aspect of life.
To get good grades in school takes the discipline of good study habits. To maintain a successful career means having good work habits. Athletes know that to be on the top of their game takes the discipline of hours of practice. The same is true for musicians or artists. The list could go on and on.
And so it also is with financial success, and your investing life.
Choosing a disciplined, prudent investment philosophy is the single most important decision the investor makes. This is one of the main messages I learned at an Advanced Coaching Conference set in Chicago this year.
What does a disciplined investing philosophy look like?
¨ Focused on asset allocation using engineered portfolios which are periodically rebalanced.
¨ Based on the science of investing.
¨ Choosing partners who focus on delivering efficient market returns.
This is the opposite of what you will find at most investing firms, the opposite of gambling and speculating, of attempting to find so-called “experts” who think they can pick winning stocks and can time the market. A disciplined client – advisor relationship is based on communication and education. That is one of the main reasons we offer classes every month. Join us this summer and discover what the dreaded “D” word can mean to YOUR financial future!
By Margaret Wittkopp
Investment Advisor Representative
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