Investors, Are You Doing The Work?

Investors, Are You Doing The Work?

by: Brendan Magee

Over the last two years I have been engaged in a pretty intense workout regimen. If you are familiar with the CrossFit craze that has been sweeping across the country you might have an idea of what I am talking about. The intense hour long workout involves a lot of sit ups, push ups, burpees, mountain climbers, running in place, planks, hitting a heavy bag, etc. When finished, there is no doubt as to whether or not I have worked out. My weight has dropped by about 20 pounds in that time.

Prior to starting this workout regimen I went to the gym four to five days a week did a little treadmill work, stationary bike, some weights, etc and went home. I went to the gym but did I workout? The truth is, not really. Then in October of 2013 I had routine check up with my cardiologist. My weight was up to 214 lbs and cholesterol was higher than ever. 

When the doctor asked if I worked out I answered yes, but in the back of mind I knew I really wasn't. Nobody else but me really knew the truth. It also didn't help that with every lunch I ate,  I had a nice bag of potato chips and a couple of Cokes. As far as my health and vitality were concerned, I wasn't doing the work. The choices were pretty clear, stay on the same course and die or get to work and hopefully live to see my grandchildren. 

The same dilemma faces many investors. Rather than health and vitality (which can be affected by your finances), what is at stake is your peace of mind, quality of life, and freedom. How much or how little of these things you get to experience are tied to how much work you are putting into your money and investments. Merely, putting money into a 401k or an I.R.A. is not doing the work necessary to achieve peace of mind. Matter of fact if that is all that you do, there is a pretty good job your finances will suffer even more.

Putting in the work means determining your investment philosophy. How will your money should be managed is what is being answered by determining your investment philosophy. It means coming to an understanding of how markets and the world of investing actually work. Putting in the work means taking a look in the mirror and getting that some of your behavior and decisions could be  contributing to your lack of financial security. 

It might mean coming to the realization that on your own you will more than likely screw things up and accepting that you need a coach in your life.  

The work doesn't entail giving an investment adviser your money to invest and then walking away leaving your financial future solely in their hands. It entails participating in a system to verify that your advisers decisions are consistent with achieving your agenda. It entails attending investor briefings so that you can stay close to why what is being done with your is the best course of action. Money alone doesn't do the work. Your time, effort, energy, and passion are required. 

Sure there are pills that I could take to lose weight. These pills also promise that I could continue to eat potato chips and drink beer to my hearts content, but we have heard the horror stories that are associated with those wonder drugs. There are also those, via web sites, that tell you all you will have to do is fill out a few questions on an electronic form and from there all your investment worries will be a thing of the past. God help you with those side effects. 

The realization and we have probably all, painfully, come to this realization more than once is that there is no such thing as a free lunch. The cost usually involves money, but that is the easiest part of the solution. The real elixir is your time, effort, attention, and ego. Giving more of some of these and putting the other aside usually produces the results we are looking for. 

Brendan Magee is the founder and president of Inevitable Wealth Coaching. With questions or comments go to www.coachgee.com or call 610-446-4322.