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Improving Investor Behavior: Retire to What?

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This article originally appeared in the Denver Post, June 16, 2019.

If I asked you to define retirement, how would you describe it? Take some time and think about it. You’re probably envisioning white sandy beaches, trips to the golf course, and visits with family, free from the constraints of work and email. Sounds nice, right?

That’s how a lot of people see retirement. The belief is that upon reaching a certain age (usually around 65), retirement should be an expectation – a foregone conclusion. And once retired, people will get to enjoy “the good life” of unlimited freedom, time, and fun.

But when I’m asked to define retirement, I do it a little differently. I think back to 1996.  Read more

Improving Investor Behavior: The Positive Mindset of Investors

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This article originally appeared in the Denver Post, May 19, 2019.

Pessimism is poison for investors. Following national headlines would have you

believe we are moments away from catastrophe, teetering on the edge of sheer doom. It’s an easy narrative in which to engage, especially when we hear it every minute of every day. The problem is that repetition often convinces people, and once convinced, people tend to ignore logic. That is poisonous for investors.

If you’ve been following this column, you understand just how damaging emotions can be when it comes to investing. Emotions cloud judgment, muddy decision making, and create stressful situations. Now I’m not going to tell you everything in our world is great, but the reality is things are pretty good. Our world is arguably better than it has ever been.    Read more

Improving Investor Behavior – Managing Your Time Like Money

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This article originally appeared in the Denver Post, April 21, 2019.

As a financial advisor, I am typically hired by clients to help them manage their resources. Most often, these are financial resources including cash, investments, etc. Sometimes I help people to manage their business resources such as connecting professionals, encouraging action, and providing advice to help make sound decisions. But there is one resource that I help investors to consider, one that we all have, but tend to be terrible at managing.

That resource is time.

Read more

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PRESS RELEASE: Are You Prepared for Volatile Stock Market Swings During Retirement? Steve Booren’s new book, Intelligent Investing, Shows You How

DENVER, Colo (March 5, 2019) – With today’s stock market swings, Steve Booren’s new book, Intelligent Investing: Your Guide to a Growing Retirement Income, will help readers understand how to retire intelligently. It will equip them with the knowledge needed to get started, as well as an easy to follow investment strategy.

Read more

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Improving Investor Behavior – Doubt, Sold with a Smile

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This article originally appeared in the Denver Post, March 17, 2019.

Financial advice is usually broken into three steps. First, define your goals. Where do you want to go? Next comes a plan. This is the recipe for working toward your goals with actionable and measurable steps. Then comes implementation when you start your plan.

The first two steps lay out the “What” of your financial future; the last deals with the “How.” All too often investors make it through the first steps with optimism and progress, only to be led astray with the last. This is when experts, products, advertisements, advisors, and everyone else in the financial world tell you their way is best – and all the others? Well, they just don’t measure up.

Of course, this leaves investors with a problem. Who can you trust? Read more

Improving Investor Behavior – Know the “Why” for your Investments

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This article originally appeared in the Denver Post, February 17, 2019.

As financial advisors, we receive questions about all types of investments. Here’s one we recently heard:

I am a doctor, and many of my friends and fellow doctors are getting into real estate. There is a group that invests in local deals in our area, and it is easy. All I have to do is write a check (no property management, no upkeep, dealing with tenants, realtors, leasing agents, etc.). What are your thoughts on investing in real estate?

It could be a sign of the times or where we are in the economic cycle, but questions about real estate keep popping up, especially from investors in Colorado. This is a stark change from  2008 – 2012 when no one wanted to go near real estate. That’s when prices were inexpensive and investing in real estate made sense. Today, with prices up significantly, that’s not the case.

Before I can address whether real estate investing would be a smart thing for the doctor, I ask a few simple questions: Read more

Improving Investor Behavior – Learn to Love a Falling Market

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This article originally appeared in the Denver Post, January 20, 2019.

The financial markets have given investors quite a ride in the past few months. Not only have we seen a drop in the prices, but the volatility and multiple-percentage point days seems to have investors feeling a little seasick. The first thing queasy people want to do is to get off the boat.

This is precisely the wrong thing to do, and here’s why. Thinking fluctuation is bad for investors is an incorrect perspective. Volatility is the stock market’s way of redistributing shares of great companies to their rightful long-term owners. When markets fluctuate as they have in recent months, it is nearly impossible to divorce yourself from the emotional powers of fear and greed. The price per share does not matter unless you are buying that day, or selling that day. Other than some “entertainment value.” daily fluctuation should be ignored.

“What makes stocks valuable in the long run is not the market. It is the profitability of the companies you own,” said Peter Lynch in Worth Magazine in 1995. I agree with him. Over time, as corporations become more valuable, sooner or later, their shares will sell for a higher price. Our contention is you need to remember you own a piece of successful, profitable companies. Read more

Improving Investor Behavior – Focus on the Right Number

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This article originally appeared in the Denver Post, December 16, 2018.

With the year coming to an end, 2018 has been a tumultuous one for investors. For the first time in 46 years, there has not been a clear winner in any asset class: from stocks to bonds, emerging markets to precious metals. As of this writing, none are on track to generate a better than five percent return according to a recent article from Bloomberg.

With all the attention focused on performance and prices, little appreciation goes to what we believe is a most desirable outcome for investors: income. Why do most people invest? Income. Whether you need that income today or tomorrow, most people invest with the belief that doing so will provide, maintain or improve their income. Read more

Improving Investor Behavior – Managing the Pain of Regret

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This article originally appeared in the Denver Post, November 18, 2018.

Regret may be the most enduring and damaging emotion investors grapple with during their financial lives. As financial advisors we see it from both sides: clients either regret having done something, or regret NOT having done something, or more often, both. Like a cancer, regret can crawl into all facets of your financial life and encourage you to make bad decisions. All too often, it’s successful.

What is regret? The way I see it, regret is the revisitation of past mistakes. Maybe someone hit the panic button as the market dropped, only to watch investments rebound in a short period. Perhaps they jumped out at a good time, but couldn’t decide on a “right time” to jump back in, missing out on would-be gains. Investors watch themselves do this over and over each time saying they won’t do it again. Then, when they inevitably do, the regret only deepens. This vicious cycle can pour over into other areas of life. How often have we heard the stories of someone betting their life’s savings just to have the outcome bounce the other way? Read more

4Gen Now Conference

David Morrison and Prosperion Financial Advisors were the title sponsor for the 2018 4GenNow Conference held at the CU Denver South Campus.