Whole-istic Investment Strategy
Don't let your poor mental accounting derail you
One common mistake made by people is relying on their ability to manage all their assets well by logging into multiple accounts, often at different times, and allocating their assets.
But more often than not, when I work with someone, they have a lot more exposure to an asset class than they told me.
It makes sense. We are all busy, and putting all your assets into a spreadsheet to get your exact allocation would be a huge time burden.
Yet time and again, a customer will say something like “I am 60/40 investor (or whatever their investment style is - dividend, growth, high-risk, low-risk, etc)” and when we start going through their assets you see they are no where close to that target.
The 60/40 investor is more like 90/10.
The income/dividend investor is majorly in non-dividend paying stocks.
The high-risk investor is sitting on mountains of cash…you get the point.
It happens to the best of us. You try to have each account ‘diversified’ but somehow across all your assets you wind up completely off-target.
Why does this happen? How do you fix it? And how do you take a more ‘whole-istic’ approach to your money?
