How to Successfully Start Investing On Your Own In Three Easy Steps!
Before we begin, ask yourself the following:
- Are you questioning the value of your financial advisor?
- Are you feeling that your financial interests are NOT being served, first and foremost?
- Are you continually losing trust and confidence in Wall Street and the financial services industry?
- Are you fearful of another market meltdown and the unintended consequences?
- Are you thinking now might be the time to start investing on your own?
Did you or someone you know, personally experience the pain from the past ‘decade of lost returns’ due to:
- Two bubbles that burst costing trillions of dollars in investor losses
- The volatility of today’s markets creating investor uncertainty and fear
- The un-denying greed and self-serving nature of Wall Street, the financial services industry and the majority of those that work in it.
One did not have to personally experience financial loss to understand this pain and the long-term negative consequences that are, and will continue to be felt by so many investors, especially retirees and the baby-boom generation. Many investors are now having to rethink their retirement plans, can they retire when planned, if not, how much longer will they have to work or will they have to down-size their retirement dreams and.or lifestyle. None of these are options anyone wants to face as they near their golden years. This ‘lost decade’ does have a silver-lining though…the power of choice.
“When it is obvious that the goals cannot be reached, don’t adjust the goals, adjust the action steps.”
As an investor, if you answered yes to any of the above five questions, you’re definitely not alone and in fact you are in a select group, the majority, and for good reason. In a recent study conducted by Cogent Research, more than 50% of the Gen-X investors surveyed are not satisfied with their financial advisor and are considering a change in course and direction. The study also revealed a staggering fact that is hard to ignore and one that should open the eyes of every investor; “Self-directed (Do-It-Yourself) Gen X investors – those who do not trust any portion of their investable assets to a financial advisor – experienced 28% asset growth in 2010… while their peers who turned to a financial advisor for guidance reported that their investable assets climbed a mere 3% on average during that same time period.”( 1)
Based on the above facts, whose game would you rather be playing, ‘theirs’ or ‘yours?’
“There are two primary choices in life; to accept conditions as they exist, or accept the responsibility for changing them.”
– Denis Waitley
The reality; The DIY investor is a growing trend and not limited to the Gen X age investors. Truth be known, this trend of dissatisfaction with financial advisors and the financial services industry, as a whole, is broad based and knows no boundaries as it crosses all generations, levels of wealth and genders. Now, some may be saying if it were that easy, why is there no ‘mass exodus’ of investors from their financial advisors, Wall Street and the entire financial services industry? The answer is quite simple: This ‘rogue’ trend is just starting to gain momentum, yet at a very slow pace. Only a very small percentage of investors have reached the point of, ‘I’m mad as hell and not going to take it anymore’ and are ready, willing and committed to the steps necessary to take back control of their financial futures.
You must however understand the following; some DIY investors succeed while others fail. Those that take the leap unprepared, unknowing and unwilling to make the necessary lifelong commitment doom themselves to certain failure as a DIY investor. This group of DIY investors is usually of the mindset, “I’ll go it alone,” rather than finding a partner with the knowledge and expertise to educate, mentor and guide them on their new found journey with proven strategies for success. There is NO ‘get-rich-quick’ strategy for an investor, either with an advisor or as a DIY’er…none, nada, it does not happen!
The group of successful DIY investors, better known as informed self empowered investors, have followed the three basic steps required for any prudent decision making process. The power of choice provides every investor this opportunity to freely explore what is meant by being an informed self empowered investor. If someone chooses to pursue the benefits and rewards of becoming such an investor, they only need to do the following three things:
- Clearly understand the choices and the differences
- Make a decision as to which choice is best suited for them
- Take action and make a commitment to follow a proven model for success
Let’s look at each briefly.
First, you must understand the choices, and there are only two every investor faces. I like sports analogies and will use one here. Investor’s choice revolves around whose game you want to play, ‘their game’ or ‘your game.’ ‘Their game’ is the game your advisor, Wall Street and the industry NEED YOU TO PLAY! They create the rules, they tell you what field you must play on, they control the clock, they hire the officials and all an investor has to do to play is put up 100% of the money, assume 100% of the risk…and pay them to play ‘their game’…and one last minor detail, they define the winners and losers before the game starts. Do you feel like the odds are stacked against an investor playing ‘their game’? It is!!! That’s why so many true titans of the industry refer to it as a loser’s game.
‘Your game’ on the other is a game where you choose what rules you want to play by, you play with a home field advantage, you are now in complete control of the clock, your officials always work in your best interest, there is only one winner…YOU…and your investment dollars now build wealth only for you…NOT your advisor, Wall Street and the financial services industry
“It is only when you exercise your right to choose that you can also exercise your right to change.”
– Dr. Shad Helmstetter
Second, now that you clearly understand the two choices and the differences, you now have to make a decision as to which game you want to play. But before you decide, ask yourself the following questions. Do you want to play a new game, a winner’s game, ‘your game’? Are you sincerely ready, willing and committed to take the necessary steps to take back control of your financial future so you can reap the many rewards that are afforded such a decision…and…invest the minimal time required for such success?
“Using the power of decision gives you the capacity to get past any excuse to change any and every part of your life in an instant.”
– Anthony Robbins
And third, if you answered yes to playing a new game, a winner’s game, and you’re ready, willing and committed, you now have only one more step: TAKE ACTION! Taking action requires you to enrich your knowledge, become empowered and partner with a company that will easily, confidently and successfully help you escape the tyranny of the financial services industry, without complexity and information overload.
“The most important key to achieving great success is to decide upon your goal and launch, get started, take action, move.”
– Brian Tracy
Choosing to become an informed Self Empowered Investor is just that easy and in the process, you’ll learn how to:
- Become your own most trusted financial advisor.
- Ensure your investment dollars are building wealth for YOU…NOT an advisor and the industry.
- Select an investment strategy that fits your personal investment goals, tolerance for risk and lifestyle.
- Enjoy peace-of-mind knowing you’re in complete control of your financial future
If the above looks like a game you would prefer to play, why not join the growing trend of informed self empowered investors playing a winner’s game? Get started by checking out our website, watch The SEI Difference video on the Home page and visit our Products/Services page. Today, you can begin your exciting new journey towards financial freedom and success! The choice is yours.
“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
– Mark Twain
1Cogent Research Report: http://www.cogentresearch.com/CogentResearchEmergingInvestors2011.pdf