Put Science and Academic Research on Your Side
The important thing in science is not so much to obtain new facts as to discover new ways of thinking about them.
— Sir William Bragg, Scientist
Many of us want to be in better shape and live a healthy lifestyle — but wish it were easier to do. The health and fitness industry understands this perfectly. They bombard us with advertisements and testimonials of how to lose weight and get in shape easily.
Alternatively, consider the evidence-based approach the medical community has developed for weight-loss and healthy living. It might not be exactly what we want to hear (eat sensibly – exercise more) but at least we have a path to success to follow if we choose. This evidence-based approach increases our probability of success, and we don’t have to waste time and money on solutions that don’t work!
As with the fitness industry, there is no magic pill for successful investing. CNBC and financial magazines hype stories on “How to Pick the Best Stocks Now” or “Why You Need to Own This Company.” Sadly, these ideas almost never work.
The good news for investors is that there are evidence-based investment strategies, grounded in academic research, that may increase potential return and decrease potential risk. Sound advice may not sell magazines or drive TV ratings, but it can do something much more important: ultimately increase your probability of reaching your financial goals. Because life changes along the way, you will meet regularly with your advisor to ensure that the plan is still on track and that your circumstances or goals have not changed.
