Our 3 Step Investing Process, Ep #135

What are you investing for?

Many say higher or better returns–but higher or better than what?

What do those higher returns make possible for you?

To have a successful investment experience you need to have a plan in place. On this episode, we discuss our 3 step investing process.

This process creates the guideposts for all Financial Symmetry clients. Listen in to learn why failing to plan means you are planning to fail.

Why do you need a plan?

Have you ever thought about why you are investing in the first place? Before creating your investment plan you’ll want to set your goals. This way you can understand what kind of returns you need in order to achieve your goals.

We are all often guilty of the lottery mindset–that mindset that thinks if we could choose that one next big thing then we would be set. All we needed to do was buy Apple in 2000, or Tesla in 2012, or Bitcoin at $1000.

But the reality is, successful investing requires a plan. Your investment plan can help you understand when to buy and sell or increase or reduce risk in your portfolio.

Our 3 step process

At Financial Symmetry, we use a 3 step process to help our clients achieve their financial goals.

• • 1. Determine when you need the money. Will you need it sooner or later? When you need the money determines the amount of risk you can take. The longer you own stock the more the risk diminishes, so as investors, we are short-term pessimists and long-term optimists.
    2. Have a plan in place. Having a plan means that you won’t have to react to market events. This is why the rules-based process is so important. Think about what you can control and implement the plan by using low-cost, high-quality investments. Whether you use index funds or active funds doesn’t matter as much as how you plan.
    3. Monitor your investment plan so that you can stay invested. Take advantage of opportunistic rebalancing and buy and sell based on your target percentage. Many people leave out this step but it is just as important as the other two steps.

5 things you can expect as a Financial Symmetry client

You may be wondering what we at Financial Symmetry offer to our clients. Our clients can expect these 5 things from us.

• • 1. Our focus is to help you achieve your goals. We focus on long-term success over short-term results.
    2. Clients can review their investments on a daily basis in the Client Center.
    3. We know that communication is important, so we make sure to answer your questions. We understand that it’s your money we are working with.
    4. We provide years of experience and do extensive research on all our investments.
    5. We all invest in the same way as our clients.

We can help you reach your goals

What is your investment plan? Do you have a rules-based process? Investing is a lot like fitness. Everyone wants to start, but it can be hard to keep up. We can be your financial personal trainer and help you stay on track to reach your goals.

We can make investing easier for you. If you don’t have the knowledge, experience, and interest to do this all on your own we can help.

Outline of This Episode

• • • Why are you investing in the first place? [3:40]
    • We follow a rules-based process [6:02]
    • Monitor your investment plan [15:32]
    • 5 things to expect as a Financial Symmetry client [18:21]
    • The progress principle [23:25]

Resources & People Mentioned

• • • Episode 118
    • Our Investment Strategy and Historical Results