20 Must Answer Questions

  1. Have you discovered your True Purpose for Money/Life, that which is more important than money itself?
  2. Are you aware of all the mental biases and blind spots you will likely face as an investor?
  3. Are you invested in the market?
  4. Do you know the three warning signs that you may be speculating with your money versus prudently investing it?
  5. Do you have an academic understanding of how markets work?
  6. Have you defined your Investment Philosophy?
  7. Do you consistently and predictably achieve market returns?
  8. When it comes to building your investment portfolio, do you know exactly what you are doing and why at all times?
  9. Do you have a system to measure portfolio volatility?
  10. Do you have an academic method for measuring your risk tolerance and do you know what that number is?
  11. Have you measured the quality and maturities of the fixed income in your portfolio?
  12. Do you know where you fall in the Markowitz Efficient Frontier or how far under it you are?
  13. Are you working with a wealth coach versus a financial planner?
  14. Do you have an algorithm and proven process for rebalancing your portfolio?
  15. Have you measured the total amount of commissions and costs in your portfolio?
  16. Do you fully understand the implications and applications of diversification in your portfolio?
  17. Do you have an Investment Policy Statement?
  18. Have you devised a clear-cut method for measuring the success or failure of your portfolio?
  19. Can you identify the cultural messages and personal mind sets about money that destroy your investing peace of mind?
  20. Are you ready to shift your personal experience of money and investing from a scarcity mode to an abundance mode- where you can live your life rather than obsess about your assets?

 

When you have achieved the ability to answer “yes” to all of these questions, you will be on your way to a high level of investing peace of mind.