2936: What Does It Take To Be A Successful Investor by Vicki Cook & Amy Blacklock of Women Who Money

[00:00:00] Brauchen wir wirklich noch einen Computer? Alle wahrscheinlich nicht. Aber wenn du Musik mit der Power eines Neuralprozessors neu erfindest oder unterwegs Migrationsmuster mit einem ganztägigen Akku analysierst oder deine Ideen mit dem KI-gesteuerten Co-Creator zum Leben erwächst, dann kann ein Co-Pilot Plus PC einen Unterschied machen. Nicht alle brauchen einen leistungsstärkeren KI-Computer. Aber wenn du versuchst, die Welt zu verändern, auch wenn es nur deine eigene ist, haben wir einen für dich entwickelt. Microsoft Co-Pilot Plus PC mit Snapdragon. Die bisher schnellsten und intelligentesten Windows PCs. Die Akkulaufzeit variiert hier nach Nutzung und Einstellungen.

[00:00:30] Have you ever noticed how a calm mind can really set the stage for a good night's sleep? That's the idea behind our new podcast, Good Sleep. Greg, our host from Optimal Relationships Daily, is here to help ease you into a peaceful night's rest with some positive affirmations. And these affirmations aren't just comforting. They can help ease anxiety and nurture positive thoughts, setting you up for true good sleep. So press play on Good Sleep tonight, because a good sleep is a good sleep is a good sleep.

[00:01:00] Good tomorrow starts with a good night's sleep. Just search for good sleep in your podcast app, and be sure to pick the one from Optimal Living Daily. This is Optimal Finance Daily. What does it take to be a successful investor? By Vicki Cook and Amy Blacklock of WomenWhoMoney.com.

[00:01:20] Several studies in the last few years have found that many women are really good investors. In fact, you might be surprised to learn that women often earn higher returns on their investments than men.

[00:01:31] They also tend to add more to their account balances over time. But there's still a confidence gap when it comes to women and investing. Many women don't invest their money or enough of it because they lack confidence. This causes them to miss out on the power of compounding that's earning interest on top of interest for years.

[00:01:52] Instead, women tend to play it safe by using savings accounts rather than investing their money. While using a high interest online savings account for your emergency fund is a smart money move, the interest you earn will barely keep up with inflation.

[00:02:10] Investing not only fights the effects of inflation, but it also helps grow your net worth over time, better preparing you to take care of yourself in retirement, assist your aging parents financially, or help with expenses such as college for your kids.

[00:02:25] If you're worried you don't have what it takes to be a successful investor, keep reading to learn more about the traits and habits helping people build wealth through investing.

[00:02:35] And don't be concerned if you don't have all of them. Instead, find ways to build on your strengths and address your weaknesses. That's the recipe for finding success with investing.

[00:02:46] 7 Characteristics of Successful Investors

[00:02:50] 1. They are patient

[00:02:52] We've all heard the expression, patience is a virtue before. And it certainly makes sense when it comes to growing your wealth through investing.

[00:03:00] Most people invest over decades to meet their long-term financial goals. The ability to continue investing money regularly, sometimes waiting years to see significant gains, requires plenty of patience.

[00:03:14] But those who stay the course are often rewarded with big profits.

[00:03:19] Success tip number one. If you lack patience, automate your investments so you don't have to think about them and how they're performing very often.

[00:03:27] Put away the passwords to your accounts, avoid reading about and listening to the daily hype on the markets.

[00:03:34] Stick to your investing strategies and revisit your financial plans at a set time each year.

[00:03:41] 2. They are learners

[00:03:43] To be a successful investor, you have to make informed decisions.

[00:04:06] Success tip number two.

[00:04:08] It's still essential to have a solid understanding of where your money is invested and how investment management fees can impact wealth building.

[00:04:17] You'll also need to monitor your portfolio performance and meet with your financial advisor regularly about your investments and progress toward financial goals.

[00:04:27] Personal capital is a great tool for helping to track your investments.

[00:04:31] And their retirement fee analyzer can help you understand what fees you're paying.

[00:04:36] Number three. They seek help when they need it.

[00:04:40] Taking the time to learn on your own is important, but savvy investors also know when it's time to learn from others.

[00:04:47] Success tip number three.

[00:04:48] If you've made mistakes investing or lack specific skills or traits of successful investors, you might seek the help of a financial coach.

[00:04:57] Attending a workshop or conference or taking a course can provide the information and interaction you need to move forward.

[00:05:04] Number four. They understand the risks involved.

[00:05:08] To be a successful investor and meet long-term financial goals, most people have to consider some exposure to higher risk investments due to inflation.

[00:05:18] But you also have to know yourself and your level of risk tolerance.

[00:05:23] Success tip number four.

[00:05:24] Higher potential returns indeed come with higher risk, but some investments are riskier than others.

[00:05:30] Those who are risk adverse might shy away from most higher risk investments, but they need to understand their minimizing opportunities to earn substantial returns when they do.

[00:05:42] Successful investors understand the risk-return relationship and build diversified portfolios aligned with their long-term financial objectives.

[00:05:51] Number five. They are confident.

[00:05:54] It makes sense that your confidence with investing will grow if you have a good understanding of market history and a commitment to learning more about investing and seeking help when you need it.

[00:06:05] Success tip number five.

[00:06:07] Successful investors aren't just confident.

[00:06:10] They have humility too.

[00:06:12] They expect volatility in the market, but understand volatility and loss are not the same things.

[00:06:18] Confident investors know when to pause and stick with their plans and when to take action and change course.

[00:06:25] They evaluate their portfolios to ensure diversification and consider harvesting tax losses or tax gains to minimize tax liability.

[00:06:35] Number six.

[00:06:36] They focus on their goals.

[00:06:38] Your investing strategy should be aligned with forward-looking goals, and you have to be disciplined enough to stay focused on those goals.

[00:06:46] Success tip number six.

[00:06:48] Successful investors understand they have no control over inflation or the stock market, but they consistently invest for their future and diversify their portfolios to reduce the risk of losses.

[00:07:00] They also review their financial mission statements to make sure they're on target to meet their goals.

[00:07:06] Number seven.

[00:07:08] They control their emotions.

[00:07:10] We all have different money stories that influence our behaviors and investing experience.

[00:07:15] While some people find it easy to ignore market ups and downs, others struggle not to act on the emotions of greed and fear.

[00:07:25] Success tip number seven.

[00:07:26] You may think you'll act rationally and always use data to inform your investing decisions, but plenty can go wrong when it comes to managing emotions and money.

[00:07:36] Staying focused on your goals, remaining calm, and ignoring the noise during market turmoil are keys to being a successful investor.

[00:07:46] Becoming a successful investor.

[00:07:48] You invest money to make more money and build wealth.

[00:07:52] And one of the most important things you can do to get better at investing is to reflect on your traits and habits and compare them with those of successful investors.

[00:08:00] The good news?

[00:08:02] If you lack some of those characteristics, there's a lot you can do to improve or make up for what you're missing.

[00:08:08] While you might be able to address some of your weaknesses without assistance, don't be afraid to seek the help of others, including a financial coach.

[00:08:17] You may have to spend some money to make more money in the end.

[00:08:21] Just remember that everyone can learn how to invest.

[00:08:24] And the sooner you learn about and understand concepts like compound interest, the more time your money will have to grow.

[00:08:34] You just listened to the post titled, What Does It Take to Be a Successful Investor?

[00:08:39] by Vicki Cook and Amy Blacklock of WomenWhoMoney.com.

[00:08:43] And I'll be right back with my commentary.

[00:08:46] Thanks to Vicki and Amy for these great tips on investing.

[00:08:49] One thing that has helped me with investing for the long term is to think of that money I've invested as gone.

[00:08:58] Just like when I pay a bill, that money is gone.

[00:09:01] So when I'm investing, I'm paying that bill to myself.

[00:09:05] Also, my investing is all automated, just like all of my bills.

[00:09:08] So it isn't something I think about often.

[00:09:11] By keeping my expenses low and having a well-funded emergency fund, I can say goodbye to the money I'm investing because I don't need it right now.

[00:09:22] This helps me emotionally handle risk because as the market does its swings, that money in my mind is already gone.

[00:09:30] So the volatility is digestible.

[00:09:33] I also keep my investment strategy very simple.

[00:09:36] I mainly focus on fully funding my retirement vehicles in low-fee index funds.

[00:09:42] If simplicity is appealing to you when it comes to investing, I highly recommend the book, The Simple Path to Wealth by J.L. Collins.

[00:09:52] And that's another Friday edition of Optimal Finance Daily.

[00:09:56] Thank you for your support and for listening every day.

[00:09:59] We so appreciate you and our authors for writing the thought-provoking content we share on the show.

[00:10:05] Have a great weekend and I'll be back with more posts for you tomorrow where your optimal life awaits.