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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


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

Global Finance Correspondent, Financial Times


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

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

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

Director at KKR & Co. Inc.


BIGGEST FRICTION


Discipline - do the right thing.


OVERCOMING IT


Have a plan, follow it.





Manisha Thakor

Founder of MoneyZen, Financial Literacy Advocate

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

Chief Investment Officer at Plancorp, Blogger

BIGGEST FRICTION

Their own cognitive and emotional errors.


OVERCOMING IT

Hire a financial advisor.









Morgan Housel

Partner @ Collaborative Fund, Blogger



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

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


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

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

Chief Investment Officer @ Savant Wealth, Blogger




BIGGEST FRICTION

The inability to distinguish between the interesting and the actionable.


OVERCOMING IT

Find trusted filters.






Rodrigo Cancela


BIGGEST FRICTION

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


OVERCOMING IT

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




Cameron Passmore

Executive Chairman & Portfolio Manager @ PWL Capital


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.


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My blog posts are informational only and should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in my posts will come to pass. They are not intended to supply tax or legal advice and there is no solicitation to buy or sell securities or engage in a particular investment strategy.

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