Your Ideal Life Tip: Investment Basics

07 Jul 2015

“I skate to where the puck is going, not to where it has been.” –Wayne Gretzky

The fundamental problem with chasing market performance is that by the time you recognize that a particular investment has been doing well you likely will be too late to participate in the gain. It’s more likely that you will buy too high, and you could be in for a great fall.

Success has little to do with beating some benchmark or index, and it has even less to do with what your neighbor’s stocks are doing. An ideal life is so much more, and it depends on the individual. You need your own index for success: What do you need to achieve in order to attain the life you want to live?

It comes down to this: Given your resources and what you want to achieve, can you get from where you are today to where you need to be? The rate of return is not as important as you might think. Keeping up with the Dow Jones Industrial Average or with the Standard & Poor’s 500 index may not be what you need to do. You may need to do a little more—but you may also need to do less.

Always keep in mind that it’s not where you’ve been but where you want to go – even when planning for retirement.

The Standard & Poor’s 500 index is a capitalization weighted index of 500 stocks designed to measure performance of broad domestic economy through changes in aggregate market value of 500 stocks representing all major industries. The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors. All indicies are unmanaged and cannot be invested into directly. Unmanaged index returns do not reflect fees, expenses or sales charges. Index performance is not indicative of the performance of any investment. Past performance is no guarantee of future results.


Brad Berger
Brad Berger

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