In this episode, Mark talks about how investing is a combo of empirical and behavioral data point. People change advisors when portfolios don’t perform up to their expectations. Their expectations are different than what a process can offer them. The best performing managers do best over longer periods of time. You should create a list of expenses you will have when it comes to budgeting for your retirement. Investors force themselves into a position where they expect their spending to drive their investments. People think the stock market is irrational, but it's the investors who are irrational. A plan is only as good as your ability to stick to it and risk and volatility should not be in the same category - volatility may be a risk for some but not for all. Investors just do not know, they listen to the news and they overreact. If your portfolio is going down, you don’t lose anything until you sell. Investment success is not about returns, it's about a plan and a process.
May 8, 2017