We often describe goals-based investing as a framework, an approach, or a methodology.  A more complete and robust characterization would be to view goals-based investing as a discipline.

Though infrequently used in investment conversation, the term discipline implies more than a single process or mathematical methodology.  A discipline can be viewed as a means to an end, a philosophy or mindset which, if practiced consistently and regularly over time, culminates in a type or degree of success which could not be achieved directly and immediately.  The discipline of goals-based investing is a set of principles, regular calculations and personal reflections, ways of decision-making, and practices which govern our financial lives.  The goal of this discipline is clear and quite different from the common goals expressed by Wall Street:  to maximize the probability of achieving our specific financial goals.

Six principles foundational to the discipline of goals-based investing are stated, each of them crystallizing a concept or set of ideas discussed in prior podcasts.  The willingness to “…practice radical self-awareness” is highlighted, as above all the goals-based investor must remain ever aware of his own behaviors and tendencies if long-term goals are to remain in focus.

Featuring:

• Speaker: Jack Parham - Chief Investment Advisor, Eton Advisors Group
• Host: Greg Dixon - Marketing Consultant, Eton Advisors Group