Following the right investment model.
Leading advisory firms no longer equate success with picking outperforming stocks. Rather, the popular methodology today is to create investment portfolios with multiple asset classes, maximizing return per unit of risk. It’s a fine approach for large institutions that will be invested in the markets in perpetuity, but not for individuals. After saving for 30 years, you can’t wait out a 15-year bear market to start your retirement. Your plan needs to be based on a specific time horizon, focused on when you’ll start taking distributions and how long you expect to do so.