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As I do most mornings, I spend a little time reading and catching up on current events. A week or so ago I stumbled upon an article from Fidelity titled, “6 Habits of Successful Investors.” These are the types of articles I like to read. It is important for me to be aware of what Financial Institutions and other financial professionals are thinking about so our team can best serve our clients.
I found this article very interesting. I mean, who would not want to know what habits successful investors have and compare it to what we are doing for our clients? Should we change anything? Should we pivot our process/strategies? Are we missing anything? These are all questions that I think about when I read an article like this. Here is a summary of the 6 points from the article.
- Start with a plan. Without a plan it is impossible to know where you are going and if you are on track. This would be compared to driving to a town in Montana without a map or a GPS. It is going to be very difficult to know if you are heading in the right direction or if any adjustments need to be made on your trip.
- Stick with the plan. This part was great. Roger always says, “It’s not timing the market, it’s time in the market.” And that could not be truer with these stats. In the financial crisis of 2008. Those that stayed invested saw their investments grow 147% over the next decade. Those who fled for the sidelines and tried to time the market saw their accounts grow by an average of 74%. That is almost a 100% great return by staying in the market and sticking to the plan.
- Be a saver, not a spender. I think about you, our clients. Many of you have done such a great job of managing cash flow and saving throughout your careers. It makes our job as professional much more enjoyable when we can generate sufficient cash flow throughout retirement using our proprietary strategies.
- Diversify. Speaking of OmniStar’ s proprietary strategies, we talk about it frequently internally and often with clients. Diversification is key. Our strategies are time tested and with our rules-based approach it takes the bias out of the investment decisions. Our portfolio team meets multiple times each week to ensure we are diversified correctly.
- Consider low fee investment products that offer good value. This one is one that I would change. To relate to OmniStar, I would say: “Consider low fee investments that offer good value.” Let’s take out the product part of the title. Being a fee-based planner and not commission-based, we do not sell products or earn commissions. It is all about sitting on the same side as our clients, giving unbiased advice to grow their investments and net worth as much as possible. This is done by minimizing expenses and not using expensive products in the portfolios.
- Don’t forget about taxes. Two things in life are guaranteed, death and taxes. We plan for death through extensive estate planning techniques, and we are constantly thinking about taxes. In your taxable account you probably see investments being sold for losses. This is intentional as we can harvest losses to offset gains in the account. We implement Roth IRA strategies to help diversify retirement income. Taxes are always on our minds for clients.
This article was a great read because it solidifies OmniStar Financial Group, our success strategy, and the mission to our clients. The reason we are here is to empower you to reach your goals and live your best life. We appreciate each of you and we are so thankful for our relationship with you. We know you have a choice of financial professionals, and we do not take it for granted.
Have a great weekend,
Dustin Hocken
Fidelity Article:
https://www.fidelity.com/learning-center/personal-finance/six-habits-successful-investors
