Accountant Forums


Reply
Thread Tools

Self-control strategies

 
 
David S Meyers CFP
Guest
Posts: n/a
Thanked:
 
      12-27-2011, 07:40 PM

Saw the following, relating the results found in a report
by Barclay's Wealth. (Text below copied from a blog
posting about it - the report itself may be found here:
http://www.barclayswealth.com/insigh...UK__ForWeb.pdf
)

What caught my attention was Strategy #1, which I'v seen other
folks post about in other contexts as well. It just seems to
me to be an *terrible* strategy. It's up there with the idea
of buying load mutual funds as a way to trick yourself into not
trading frequently because of the costs - it's just a bad idea.

(There may be other reasons to buy illiquid investments - perhaps
the best is if it's intended to be a very long-term holding and
the illiquid nature leads to great low-price opportunities to buy
from someone who is under pressure to sell)

The others are mostly pretty good strategies. I especially like
#3 and #5 - rules and cooling-off-periods. The example of a rule
they provide may actually be controversial (ie. to a total-return
portfolio management style), but the idea of rules - a system -
is great.

--david

The report identified seven self-control strategies to help people
counter their tendencies to make bad financial decisions:

1. Limit the options. Purchase illiquid investments to avoid the
urge to sell investments when the market is falling.

2. Avoidance. Avoid information about how the market or portfolio
is performing in order to stick to a long-term investment
strategy.

3. Rules. Establish and use rules to help make better financial
decisions, such as spend only out of income and never out of
capital.

4. Deadlines. Set financial deadlines. For example, aim to save a
certain amount of money by the end of the year.

5. Cool off. Wait a few days after making a big financial decision
before executing it.

6. Delegation. Delegate financial decisions to others, such as
allowing an investment adviser to manage your portfolio.

7. Other people. Use other people to help reach financial goals.
An example would be meeting with a financial adviser to make
and execute a financial plan.

--
David S. Meyers, CFP(R)
http://www.MeyersMoney.com
disclaimer: for educational purposes only. This is not financial advice.

 
Reply With Quote
 
 
 
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are On
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
New accountant - Job search strategies? WEF1159 Accounting 4 08-11-2006 10:46 PM
Simple Strategies to Making Financial Gain Mydas Accounting 0 11-27-2004 07:18 PM
Small (on the side) consulting business - Any ideas for self-directed pension strategies? sinc720d Tax 1 06-09-2004 06:19 AM
Accounting Strategies Sally Chung Accounting 2 02-20-2004 05:01 PM
Strategies for coding an accounting program Brian Link Accounting 7 07-15-2003 06:21 AM


All times are GMT. The time now is 11:33 PM.
Posts in this forum do not constitute the advice of AccountantForums.com or its members. Financial advice should always be taken from qualified advisors before committing to a financial decision.