February 2020
Rebalancing
There's no such thing as a free lunch, as the saying goes. However, when it comes to investing there are many things which come close enough.
These things may require only a little bit of effort, but pay great dividends to those who have the discipline to do them. One such habit is that of rebalancing. Over time, the different assets in a portfolio will experience different rates of return.
If no rebalancing is done, a portfolio will trend towards the holdings that have performed well. In order to return to the original asset allocation, the portfolio needs to be rebalanced.
This means that the allocation to assets which have outperformed is reduced (i.e. a portion is sold), while the allocation to assets which have underperformed is increased (i.e. more is bought).
This is counterintuitive, the exact opposite of what most people are tempted to do. Investing is simple, not easy.
Main Feature
On 4 December 2019 we hosted the 3rd HUM London event at a packed Royal College of Physicians.
The day was an all-round success. If you weren't able to secure a ticket, you can find the videos here.
This year's show will be held on 26 November at the same venue. Here are a few highlights from the London 2019 event.
Articles and Blogs
The Fifth and Final Rule of Human Risk is… [5 minutes]. Just because you can, doesn’t mean you should.
Confessions of a Comprehensive Financial Planner [4 minutes]. Being truly listened to is powerful.
The Two Friends Who Changed How We Think About How We Think [13 minutes]. Amos and Danny made the world a better place.
3 Key Conversations to Have With Clients to Prove Your Financial Advisor Value [3 minutes]. Financial advisor value is currently misunderstood.
Ten ways the wealth-management industry won’t change in the next decade [4 minutes]. Many of these elements don’t require any technology, but they do require a lot of focus and dedication
We’ve just had the best decade in human history. Seriously. [7 minutes]. Little of this made the news, because good news is no news.
2020: What a Time To Be Alive [3 minutes]. Problems are easier to spot today, but progress is almost always more powerful over time.
Dealing with Emotional Clients [4 minutes]. Clients need to be convinced that you care about more than just their money.
The beauty of simplicity [4 minutes]. Wealth does not need to come with financial complexity.
Having a Why to Live [6 minutes]. It can make all the difference.
Podcasts
The AGILE Financial Planning Process with Roger Whitney [58 minutes]. Progress beats perfection.
How to be a hero to your clients in the 21st century [23 minutes]. Are you ready to be the guide?
The Overconfident Conversation And Walking Clients Back From The Greed Ledge [24 minutes]. Human emotion swings both ways.
Book Recommendations
Chop Wood Carry Water: How to Fall in Love with the Process of Becoming Great by Joshua Medcalf. The greatest adversity on our journey will be the challenge of defeating the man in the mirror.
The Power of Now: A Guide to Spiritual Enlightenment by Eckhart Tolle. For many this book has been life-changing.
Other
Behavioral Finance: The Second Generation by Meir Statman.
Encore
Risk Is What You Don’t See [5 minutes]
Charts Of The Decade (UK Style)
Why Do We Chase Past Performance And What Can We Do About It? [16 minutes]
How Will You Measure Your Life? [18 minutes]
Agile Financial Planning In Lieu Of The Traditional Plan [37 minutes]
Ten years of social media have left us all worse off [3 minutes]
Fix Your Roof While The Sun Is Shining [5 minutes]
The Problem of an Aging Global Population, Shown by Country
A Common Mistake Many Investors Make: Mental Rigidity [5 minutes]
A View of the Planning Profession in the Year 2030 [8 minutes]
