When In Doubt, Ask Yourself: "Why Am I Invested This Way?"

Benjamin Haas |



There are many opportunities to question our investment choices. We probably do this when we review our financial statements, read news headlines, or hear a commentator’s opinion on a hot topic, etc. And there’s certainly no shortage of news and opinions these days. So it’s very easy to get caught up in the moment where our emotions start to send us in circles. Questions can lead to anxiety, anxiety to fear, fear to more questions and more questions into more doubt about our investment choices– you get the picture.

At those emotional moments, do your best to take a step back. Stop yourself. Shut out the mental noise that makes it impossible to think clearly and then ask yourself, “Why Am I Invested This Way?”

We think there are only a few good answers to this question, which I promise to share in a minute. But first, here are 6 answers we find to be poor responses to the really important question “Why Am I Invested This Way?” and are often the source of our doubt.

  1. Because my co-worker said it was a good idea.
  2. Because I read it in Money magazine.
  3. Because my brother-in-law owns it.
  4. Because I saw this idea on CNBC.
  5. Because I heard this is how big institutions do it.
  6. Because…

In our opinion, here are some better answers to this question:

  1. Because I have a personal financial plan that clarifies my risk and return objectives and this portfolio was built to align with those expectations.
  2. Because I understand that diversification is important to my long-term strategy and aims to increase my likelihood of reaching my goals over time.

There will be more headlines in the coming weeks. You’ll hear a lot of opinions on how to invest your hard earned money. And for many of you, the emotional circle will be set in motion. It’s natural. But remember to go back to your financial plan and the long-term goals that should be at the center of your decision making process. This should help remind you why you are invested the way you are.

If in asking yourself this important question, you answer with anything other than “I have a financial plan” consider going through the planning process. We believe it’s important that everyone have a plan geared to help navigate both the highs and lows of our emotions.

Finally, if you’re not sure why you are invested as you are, give us a call. That’s why we are here; to help align your personal values, vision and wealth into a personalized plan that answers the key question “how SHOULD I be invested.”


The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. (Tracking #1-556647)