OUTSIDE VOICES

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.



OUTSIDE VOICES



Emily Guy Birken

@EmilyGuyBirken
Money Coach & Retirement Expert
Co-Author of Stacked: Your Super Serious Guide to Modern Money Management

BIGGEST FRICTION

Intimidation leads to analysis paralysis, so people put off investing.


OVERCOMING IT

Start small. Racking up some wins helps overcome the intimidation factor.





Robin Wigglesworth

@RobinWigg
Global Finance Correspondent, Financial Times
Author of Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever


BIGGEST FRICTION

Paying people who are trying to line their own pockets more than they are trying to fill yours.


OVERCOMING IT

Assemble a cheap, diversified investment portfolio and don't get cute about trying to time markets.







Dr. David Rhoiney

@SurgiFi
Entrepreneur, Financial Literacy & Independence Advocate, Surgeon, Blogger

BIGGEST FRICTION

Knowledge and FOMO.


OVERCOMING IT

Start with low risk and with time & experience add riskier positions.








Conor Feldmann

Connect on LinkedIn
Portfolio Manager @ Truepoint Wealth & Commas, Blogger


BIGGEST FRICTION

Impatience. You must avoid meddling and wait decades. It’s hard and boring.


OVERCOMING IT

Automate contributions into a diversified portfolio; never check performance.





Bryan Lubwama

Connect on LinkedIn
Director at KKR & Co. Inc.


BIGGEST FRICTION


Discipline - do the right thing.


OVERCOMING IT


Have a plan, follow it.





Manisha Thakor

@ManishaThakor
Founder of MoneyZen, Financial Literacy Advocate
Author of On My Own Two Feet

BIGGEST FRICTION

Not starting early enough to truly benefit from compounding.


OVERCOMING IT

Start contributing (more) to your 401k/403b or an IRA today.






Peter Lazaroff

@PeterLazaroff
Chief Investment Officer at Plancorp, Blogger
Author of Making Money Simple

BIGGEST FRICTION

Their own cognitive and emotional errors.


OVERCOMING IT

Hire a financial advisor.









Morgan Housel

@MorganHousel

Partner @ Collaborative Fund, Blogger

Author of The Psychology of Money



BIGGEST FRICTION

Not understanding that the long run is a series of crazy short runs that you have to endure.


OVERCOMING IT

Have more room for error in your finances. Most don't have enough.










Taylor Schulte

@DefineFinancial

Founder of Define Financial, co-Founder of Advisor Growth Community

Host of the Stay Wealthy Podcast


BIGGEST FRICTION

Doing something (i.e., making investment changes) instead of just standing there. #JohnBogle


OVERCOMING IT

Read Morgan Housel's book, The Psychology of Money. Every year.




Kristin McKenna

@Kristininvests

Managing Director @ Darrow Wealth Management, Senior Contributor @ Forbes


BIGGEST FRICTION

Making decisions based on recent events or short-term expectations.


OVERCOMING IT

Investing builds wealth, don’t let trading erode it.





Phil Huber

@bpsandpieces

Chief Investment Officer @ Savant Wealth, Blogger

Author of The Allocator's Edge




BIGGEST FRICTION

The inability to distinguish between the interesting and the actionable.


OVERCOMING IT

Find trusted filters.






Rodrigo Cancela

Connect on LinkedIn

Director @ Nantas - Asesores de Inversión, Blogger


BIGGEST FRICTION

Thinking complexity + movement is necessary. It's not.


OVERCOMING IT

Theoretically, learn the evidence of investing. Honestly, hire an advisor.




Cameron Passmore

@CameronPassmore

Executive Chairman & Portfolio Manager @ PWL Capital

Host of the Rational Reminder Podcast


BIGGEST FRICTION

Not knowing why they are investing, or when they have enough.


OVERCOMING IT

Have a plan based on living a good life now and in the future.




End.