Trying To Find The Exception To The Rule When Investing

In anything, there’s always an exception to the rule. With your financial plan, when do you chase that exception and when do you stick with what’s average? Which will be more profitable in the long run?
Share this episode with a friend:

Today’s Question:

In anything, there’s always an exception to the rule. With your financial plan, when do you chase that exception and when do you stick with what’s average? Which will be more profitable in the long run?

 

Confidence Corner

We all know that you can’t see the future or time the market, but there’s also always an exception to the rule.

Jim Simons, a mathematician and hedge fund manager is making average returns beyond all of our wildest dreams. He consistently averages a 66 percent rate of return each year in the Medallion Fund, which is run by Renaissance Technologies, the hedge fund firm he founded.

Your first question might be, how is he doing that and how can I get that kind of return? But, is this what you should be aiming for?

With your investments, often you hope for something like a 10 percent return but six to eight percent is more typical for a good rate of return. When it comes to creating your financial plan, it’s important to not chase after a pot of gold at the end of the rainbow, because that might not ever come. Greed can get in the way and cause you to make poor decisions instead of focusing on the goals and the plan you’ve set out.  

That said, you can have ambitious goals. You just have to have the drive and motivation to follow through on those. Make sure you’re being smart about your investments by taking action in order to be proactive (not reactive) with your financial plans.

Listen to the full episode to hear more about Jim Simons investments as well as your own or click the timestamps below to hear a specific segment.

1:01 – Jim Simons, a mathematician and hedge fund manager figured out a way to have average returns of 66% a year.

4:44 – It’s hard to know how he did so well or to have predicted this success ahead of time.

6:42 – If this was something that could be repeated, everyone would be doing it.

8:04 – Find the advisor that gets you and helps you with your plan.

9:40 – Use your drive and determination to accomplish your goals.

10:58 – Know what to expect in the market.

12:04 – Aim for what you need, before you chase what you think you could get.

 

A Point Of Wisdom:

 

Related Content:

PODCAST: Discussing the Laws of Investing, Part 1

PODCAST: Never Assume in Retirement Planning

 

Additional Resources:

Schedule A Meeting

Download Your Retirement Rescue Toolkit – Learn More About Our Firm

 

Your Guide:

Nathan O’Bryant – Contact

Share this episode with a friend:

EXPLORE MORE EPISODES

Discussing Dave Ramsey’s Advice

Radio talk show host turned TikTok user, Dave Ramsey, is known for doling out financial advice to a wide audience. Today, we talk through some quotes from Ramsey to see what Nathan thinks as a financial advisor. Be it investing from a place of knowledge to relying on delayed gratification to make decisions, there’s a lot we can learn from him. Ultimately though, you have to have a strategy and a plan that works for you in order to meet your financial goals. Working with a qualified financial professional to create that plan will be better than simply generic advice for the masses.

Listen Now »

The Future of Retirement in America

When we look toward the future, what’s ahead? Whether you take more of an optimistic or pessimistic view of things, it’s important to know what to expect. We talk about what Americans may face when it comes to retiring in the years ahead.

Listen Now »

Bashing the Roth?

In a shocking turn of events, we’re going to spend some time bashing the Roth today. Inspired by an article we found on Yahoo Finance, Nathan shares his thoughts on a Roth. Is it really the right thing for you? Instead of basing your decisions on some one-size-fits-all financial advice, it’s important to consider your unique and personal financial situation.

Listen Now »

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

YOUR HOST

Nathan O’ Bryant is the founder of O’Bryant & Associates, Inc., a Registered Investment Advisory firm in the state of TN. He’s been helping people plan for retirement and their financial futures for more than 15 years.

The weekly podcast features discussion and excellent guidance on the important financial planning questions we all have. Whether it’s tax planning, retirement income, social security or the stock market, you’ll find that no topics are off limit on this show.

SUBSCRIBE