Tuesday, January 28, 2014

Coffee Break: Keeping Your Nerve

Interesting Links from the Web from Jim Parker

Long-term thinking can be tough in an increasingly short-term-focused world. So it pays to occasionally reflect on ways of counter-acting the daily noise that threatens to drain our energy and commitment.
In this week’s Coffee Break, we highlight articles that reinforce the principles of discipline and sticking to the long-term goals you set at your most lucid moments.
We publish these links each week to provide you with client-ready articles that reinforce a patient, disciplined approach to money. We don’t necessarily endorse everything in each article, but there are always a few nuggets to use.
If you see anything worth sharing, please let us know.

The first rule in sticking to a long-term goal, like building a retirement nest egg, is accepting that it’s hard to do. No-one is perfect and we wouldn’t be human if there were not the occasional lapse. This article provides some useful tips for staying focused, like resisting the all-or-nothing approach and breaking down big goals into lots of smaller ones.

People who are tempted to break a diet often say they feel a sense of panic and lack of control. The strategy for dealing with this often comes back to having a framework for times when emotion threatens to get the better of us. The same principle applies to long-term investing. This article from The Wall Street Journal provides some practical tips to beat temptation.

Long-term thinking has always been hard, but it’s an even bigger test these days in the face of a 24/7 news cycle and the flood of digital information coming our way. Every day, it seems, there’s a new “unprecedented crisis”. Sometimes the best way of dealing with the madness is making fun of it. And that’s just what this article does.

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