Financial Planning Questions
Professional Wealth strategies in Tucson wants to answer your financial planning questions about how to avoid financial temptations. Investors are motivated by the financial temptations of desire. Desire can manifest itself in several ways. The first way is overconfidence. History is replete with stories of hubris and tragic fail. In his Theory of Moral Sentiments, Adam Smith said that most of the world's troubles come from someone not knowing when to stop and be content. Regrettably, the temptation of desire, as it manifests itself in investor overconfidence, is rarely satisfied. Many investors decide to tempt fate. Many investors approach investing as they would gambling. If we have been successful in the short-run with a stock, mutual fund, or other investment strategy, we may feel tempted to project that short-term history into the indefinite future. We believe that lady luck is on our side, so we let it ride. Obsessed with our gains, we become blind to risk. Everything we have could be gone in a flash. No warning will rescue the person who is determined to think they can suddenly grow rich!
The educated Investor knows how to resist the temptations from overconfidence. We will never see everything that is going on..We may know a lot, but we do not know everything. We need to be prepared to change our minds. We must do our best in light of the things that we do not know.
A different area of desire is materialism. Obesity has become another epidemic in America, as we have over-consumed and over-spent. We like to believe that happiness does not depend on material possession, but in survey after survey, when people are asked about what makes them happiest, the prevailing answer involves their economic status.
The educated investor seeks a still point in their financial life. The still point is knowledge that seasons come and go. Things change. Markets rise and fall. The educated investor journeys on the quest for financial security understanding that the unchecked desire for earthly gains and fear of loss combine to hold us back from true financial security.
Professional Wealth Strategies, 3573 East Sunrise Drive, Suite 119, Tucson, Arizona 85718, (520) 529-3644. Securities and Advisory Services offered through Commonwealth Financial Network, http://www.FINRA.org / http://www.SIPC.org, a Registered Investment Adviser. This communication is strictly intended for individuals residing in the states of AZ,CA,CT,HI,MI,OH,OR,TX,UT,VA,WA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services.
The educated Investor knows how to resist the temptations from overconfidence. We will never see everything that is going on..We may know a lot, but we do not know everything. We need to be prepared to change our minds. We must do our best in light of the things that we do not know.
A different area of desire is materialism. Obesity has become another epidemic in America, as we have over-consumed and over-spent. We like to believe that happiness does not depend on material possession, but in survey after survey, when people are asked about what makes them happiest, the prevailing answer involves their economic status.
The educated investor seeks a still point in their financial life. The still point is knowledge that seasons come and go. Things change. Markets rise and fall. The educated investor journeys on the quest for financial security understanding that the unchecked desire for earthly gains and fear of loss combine to hold us back from true financial security.
Professional Wealth Strategies, 3573 East Sunrise Drive, Suite 119, Tucson, Arizona 85718, (520) 529-3644. Securities and Advisory Services offered through Commonwealth Financial Network, http://www.FINRA.org / http://www.SIPC.org, a Registered Investment Adviser. This communication is strictly intended for individuals residing in the states of AZ,CA,CT,HI,MI,OH,OR,TX,UT,VA,WA. No offers may be made or accepted from any resident outside these states due to various state regulations and registration requirements regarding investment products and services.
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