Why is this job so difficult? Why is it so hard for people to manage their investments?
One reason is because we just don’t save enough. It’s easy to satisfy our needs today rather than to plan for years or decades into the future. Also, I think we’re hard-wired to consume what we can right away. Centuries of feast-or-famine living may have conditioned us to consume today, because tomorrow may never get here.
But this kind of focus on the short term backfires when we need to make long-range plans—for college, for retirement, or for our heirs.
So we need to save. You can’t invest what you don’t have. The first step to successful investing is to have something to invest. To have that, we need to act like the ant rather than the grasshopper.
Douglas R. Tengdin, CFA
Chief Investment Officer
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