I come across a lot of people that implement strategies from investors they admire. Much too often, these strategies are constructed without understanding the context or reasoning behind the strategy. This misunderstanding often leads to disappointment, as the outcomes don’t always meet the investor’s expectations.

You have goals, and these are often unique goals. These goals revolve around what’s important to you. Your financial situation is unique, and that uniqueness should be understood and reflected in your financial plan and your portfolio. Some billionaire sharing a soundbite in passing doesn’t know you, your goals, or what’s important to you. Mimicking their approach is about as silly as me trying to emulate Steph Curry on the basketball court.

Opinions are just the tip of the iceberg. Just like our discussion today on annuities, you have to peel away the layers to understand the basis for these opinions. Then you take those first principles you derive from this process and use that reasoning or those objectives to craft a solution most fitting to your situation.

It’s not easy, but that’s the fun part. The journey is never over…

Links mentioned in this episode:

• http://thoughtsonmoney.com