13 Experts on Investor Frictions
I've asked some insightful minds to answer a couple questions for readers.
For the average person, what's the biggest friction to achieving a successful, long-term investment experience?
What’s one action that investors can take to overcome that friction?
I've learned so much from these people over the years.
I hope you will, too.
Emily Guy Birken
Intimidation leads to analysis paralysis, so people put off investing.
Start small. Racking up some wins helps overcome the intimidation factor.
Global Finance Correspondent, Financial Times
Author of Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever
Paying people who are trying to line their own pockets more than they are trying to fill yours.
Assemble a cheap, diversified investment portfolio and don't get cute about trying to time markets.
Dr. David Rhoiney
Entrepreneur, Financial Literacy & Independence Advocate, Surgeon, Blogger
Knowledge and FOMO.
Start with low risk and with time & experience add riskier positions.
Portfolio Manager @ Truepoint Wealth & Commas, Blogger
Impatience. You must avoid meddling and wait decades. It’s hard and boring.
Automate contributions into a diversified portfolio; never check performance.
Director at KKR & Co. Inc.
Discipline - do the right thing.
Have a plan, follow it.
Founder of MoneyZen, Financial Literacy Advocate
Author of On My Own Two Feet
Not starting early enough to truly benefit from compounding.
Start contributing (more) to your 401k/403b or an IRA today.
Author of Making Money Simple
Their own cognitive and emotional errors.
Hire a financial advisor.
Partner @ Collaborative Fund, Blogger
Author of The Psychology of Money
Not understanding that the long run is a series of crazy short runs that you have to endure.
Have more room for error in your finances. Most don't have enough.
Host of the Stay Wealthy Podcast
Doing something (i.e., making investment changes) instead of just standing there. #JohnBogle
Read Morgan Housel's book, The Psychology of Money. Every year.
Managing Director @ Darrow Wealth Management, Senior Contributor @ Forbes
Making decisions based on recent events or short-term expectations.
Investing builds wealth, don’t let trading erode it.
Author of The Allocator's Edge
The inability to distinguish between the interesting and the actionable.
Find trusted filters.
Thinking complexity + movement is necessary. It's not.
Theoretically, learn the evidence of investing. Honestly, hire an advisor.
Executive Chairman & Portfolio Manager @ PWL Capital
Host of the Rational Reminder Podcast
Not knowing why they are investing, or when they have enough.
Have a plan based on living a good life now and in the future.