It’s About More Than the Money: Investment Wisdom for Building a Better Life

Chapter 8. The Best Advice Is Sometimes About What Not to Do

In August 2000, Edward contacted an advisor he had researched, with a desire to transfer his investments. The advisor evaluated his investments, helped him organize his goals, and designed an investment strategy that allocated about 60% of his money to the stock market and 40% to fixed income. Right about that time, the market began to deteriorate, and stocks performed very poorly over the next 2½ years. Edward handled this well, but it had to be tough on him, and of course the advisor was frustrated, particularly because the relationship was new. As the markets became more and more difficult, the advisor became even more discouraged and began to second guess the strategy.

Shortly ...