This is Part 2 of the Financial Health Accelerator Series on “Money and Investing.”
In this private conference call, Garrett reveals why investing according to your own Investor DNA is critical for long-term success.
How to Reduce Risk, Avoid Losses, and Boost Returns by Tapping into Your Own Investor DNA
The call is just over 20 minutes and covers the four key concepts to identifying and following your own Investor DNA.
What is Investor DNA and Why is it so Important?
In the first couple of minutes, Garrett explains how tapping into your Investor DNA not only helps you make more money with your investments, it actually frees up more time in your life.
Plus, he explains how it automatically brings a personal touch to all your Financial Planning.
Think about it … most financial planners are trying to sell you a specific product — either a mutual fund, or an annuity, or some other hybrid product.
The product itself may be okay. But they never ask, “is this the right investment for you?” Or “does it match your interests?” Or “does it suit your values?”
If you don’t answer those questions, you’ll likely get caught up in investments you don’t understand, that sap your energy, tax your patience, and inevitably bring stress rather than happiness.
And in a worst case scenario, you may even end up like Garrett…
Garrett’s 2 Worst Investments…
Garrett admits that before he fully discovered the concept of Investor DNA, he got caught up in what everyone else was doing.
He had partnerships in multiple oil wells and owned over 100 rental properties.
Both ended up failing him miserably. Not because the investments themselves were bad. It’s because he has no passion for those things. They ended up scattering his attention, and it all became a drudgery that took him away from the things he loved and was good at.
And that ended up costing him more than just money…
“Opportunity Cost” — the Most Underrated Concept in Investing…
The wealthy understand that everything has a cost, and that’s why they choose their investments very carefully.
Garrett introduces the concept of Opportunity Cost around the 2 minute mark.
He shows how Investor DNA frees up time, reduces stress, and allows you to be fully productive.
All of these things have an associated “cost,” but most financial advisers never consider them.
Garrett finishes up the concept near the 13 minute mark when he shows you how evaluate the Cost of Money with all your investments.
The Foolproof Formula of Winning Investors
Garrett then reiterates the fact that risk is in the investor, not the investment.
Think of it this way: many people make money with rental properties or oil wells. Many people lose big with the same exact investments (Garrett included, before he discovered his Investor DNA).
The difference? Obviously the problem is not the investment. It’s the investor.
Investor DNA allows you to adopt this simple (but powerful) formula:
Your Values + Your Core Competency + Focus = Win
Garrett explains what these mean and how all these fit together around the 5 minute mark in the audio replay above.
And when you follow that formula, you’ll always…
Avoid the #1 Rookie Investing Mistake
Rookie investors think they always have to be invested. They are constantly snapping up little investments here and there, darting this way and that with no focus.
In doing so, they miss the big opportunities when they come along, and get eaten by the sharks when things go bad.
And because they can’t possibly understand all the investments they are in, they are easily lured into using “diversification” as their crutch.
The Crushing Truth about Diversification
Rookie Investor Alert: No one has ever gotten rich using diversification except the people who sell it to you.
In other words, the financial industry wants you to diversify so they can “manage” your money in all these diverse places.
Why? So they can collect hefty fees … because the so-called “little” fees add up to big profits for them.
So when it comes to letting other people manage your money, you should ask this one question first…
Can a Cat “Manage” Your Money Better Than a Financial Advisor?
Yes, according to a study cited in this episode of Last Week Tonight with John Oliver.
John Oliver explains how a cat picks stocks better than most Financial Advisors
It’s a comical, but sobering exposure of how the financial services industry is making money on fees and (in general) is allowed to look out for themselves rather than you.
Garrett references the episode to point out that you need to understand more than just the basics of every investment you make.
That’s what Investor DNA is all about. And understanding it helps you become a better investor.
Access to Garrett’s Own Financial Team
Investing and Investor DNA are just one small part of your overall Financial Blueprint, but they are important to keeping the money you make.
If you’d like more information on our comprehensive, one on one services, and how to tap into your own Investor DNA…
Coming up Next:
You can find the next part of the Financial Health Accelerator Series called Maximize Your Investment Performance by Focusing on Cash Flow right here.