4 Key Tips to Make Better Investment Decisions

In this video Matt Stevenson talks about 4 Key Tips to Make Better Investment Decisions.

It is not possible to accurately predict the best days to invest in the stock market. The stock market can be volatile and can fluctuate significantly over short periods of time.

Some people may try to predict market trends or use various strategies to try to maximize their returns, but there is no guarantee that any particular approach will be successful.

One thing that can be helpful for long-term investors is to have a diversified portfolio and to stay invested for the long term, rather than trying to time the market. This can help to smooth out short-term fluctuations and potentially increase the chances of achieving long-term goals.

Emotional decision-making can be a common pitfall for investors. It’s natural to feel excited when the market is doing well or to feel anxious when it’s not performing as well as you had hoped.

However, it’s important to try to keep your emotions in check when making investment decisions.

Emotional decision-making can lead to impulsive behavior, such as buying or selling based on short-term market movements or letting fear or greed influence your investment decisions. This can sometimes lead to poor investment outcomes.

To help avoid making emotional investment decisions, it can be helpful to:

1. Have a well-thought-out investment plan and stick to it. This can help to provide a roadmap for your investments and give you a sense of direction.

2. Consider the long term. It can be helpful to keep a long-term perspective when investing and not get too caught up in short-term market movements.

3. Seek professional advice. A financial advisor or other professionals can provide valuable insights and help you make more informed investment decisions.

4. Take a break. If you’re feeling particularly emotional about a particular investment, it may be helpful to step back and give yourself some time to think things over before making investment decisions.

Allied Wealth’s Mission is to help as many people as we can to live the richest life possible with the resources they have to work with during their golden years.

Our primary discipline is to help our clients capture more of the market return that studies have proven the average investor has missed out on for more than 25 years, by seeking to limit downside risk first and capitalizing on upside growth second. 

A few key information that the president of Matt Stevenson shares throughout the video:

In this video, Matt Stevenson, the president of Allied Wealth discusses investing myths and facts, and emphasizes the importance of having a consistent approach to investing rather than trying to time the market or ride the waves of ups and downs.

He uses the example of the S&P 500 over a 25-year period to show the impact of missing the best and worst days of the market on returns. He also discusses the concept of sequence of return risk, which refers to the timing of returns, particularly in the early years of retirement, and how this can impact the sustainability of a retirement nest egg.

He advises focusing on a steady rate of return rather than trying to maximize returns, and emphasizes the importance of creating a plan and sticking to it in order to achieve long-term financial success.

He also discusses the concept of standard deviation as a measure of risk in investments. He explains that in a normal environment, standard deviation represents the expected range of change in an investment’s value, and that the goal is to have a higher rate of return than the risk being taken.

He also discusses the importance of understanding standard deviation in creating a successful retirement plan and maintaining consistency. Then, Matt Stevenson divides retirees into three categories: underfunded, overfunded, and constrained. He defines constrained retirees as those with an income to asset ratio above 3%, and caution against allowing investments to experience large drawdowns, as this can significantly increase the withdrawal rate needed to maintain a retiree’s lifestyle.

Matt Stevenson also discusses the concept of a benchmark, which is a standard against which the performance of a particular investment or portfolio can be compared.

He explains that a benchmark can be used to determine whether an investment is performing as expected, given the level of risk being taken. He also mentions standard deviation as a measure of risk in investments, and explains that the goal is to have a higher rate of return than the risk being taken.

He uses an example of a portfolio with a 40% stock and 60% bond allocation, and compares the returns of the stock market and bond market to determine the benchmark return for the portfolio.

We highly recommend that you watch the full video in order to get the most out of it and to fully understand the valuable information that is shared.

Thank you for watching the video “4 Key Tips to Make Better Investment Decisions.” We hope that you found the information provided in the video to be useful and informative, and that it has helped you to better understand the key factors to consider when making investment decisions.

Whether you are a seasoned investor or new to the world of investing, we hope that the tips shared in the video will assist you in making informed, confident investment decisions about how to allocate your financial resources in order to achieve your goals.


Our Channel ” ON THE MONEY“, is powered by Allied Wealth, Houston’s premier wealth management and financial planning firm. On the Money brings viewers educational, topic-driven, and real-life financial scenarios every week.

Topics we will be covering are Retirement and Financial Planning, Investment Selection, Retirement Income Planning, Taxes and Taxation during Retirement, Healthcare, Long Term Care, Legacy and Estate Planning, in addition to important Market and Economic changes impacting Retirement.

Allied Wealth is fully dedicated to your financial future, financial security and retirement.

With Allied Wealth, you will spend less time worrying and more time enjoying the life you’ve earned.