{"id":71348,"date":"2020-09-20T16:00:08","date_gmt":"2020-09-20T13:00:08","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/want-to-retire-rich-start-by-unlearning-some-conventional-wisdom\/"},"modified":"2020-09-20T19:37:47","modified_gmt":"2020-09-20T16:37:47","slug":"want-to-retire-rich-start-by-unlearning-some-conventional-wisdom","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/want-to-retire-rich-start-by-unlearning-some-conventional-wisdom\/","title":{"rendered":"#  Want to retire rich? Start by unlearning some conventional wisdom"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a349403a2bde\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a349403a2bde\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/want-to-retire-rich-start-by-unlearning-some-conventional-wisdom\/#Jonathan_Clements\" >Jonathan Clements<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong>#<br \/>\nWant to retire rich? Start by unlearning some conventional wisdom<br \/>\n<\/strong>&#8221;<\/p>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">watch Movies<\/a> or TV series visit the <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/dizi.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Dizi.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<div class=\"byline article__byline\">\n<div class=\"author hasMenu\" data-scrim=\"{&quot;type&quot;:&quot;author&quot;,&quot;header&quot;:&quot;MarketWatch&quot;,&quot;subhead&quot;:&quot;The Wall Street Journal&quot;,&quot;list&quot;:[]}\">\n<div class=\"\n        media-object\n        type-InsetMediaIllustration\n          inline\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--inline\n  \" data-layout=\"inline\n              \" data-layout-mobile=\"\"><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        renoImageFormat-\n        img-inline\n        article__inset__image\n      \"><\/p>\n<div class=\"image-container  responsive-media article__inset__image__image\" data-mobile-ratio=\"66.640625%\" data-layout-ratio=\"66.640625%\" data-subtype=\"\"><img decoding=\"async\" title=\"\" src=\"https:\/\/images.mktw.net\/im-233149?width=620&amp;size=1.5005861664712778\" sizes=\"(max-width: 140px) 100px,\n(max-width: 540px) 500px,\n(max-width: 620px) 580px,\n(max-width: 700px) 660px,\n(max-width: 860px) 820px,\n1260px\" srcset=\"https:\/\/images.mktw.net\/im-233149?width=140&amp;size=1.5005861664712778 140w,\nhttps:\/\/images.mktw.net\/im-233149?width=540&amp;size=1.5005861664712778 540w,\nhttps:\/\/images.mktw.net\/im-233149?width=620&amp;size=1.5005861664712778 620w,\nhttps:\/\/images.mktw.net\/im-233149?width=700&amp;size=1.5005861664712778 700w,\nhttps:\/\/images.mktw.net\/im-233149?width=860&amp;size=1.5005861664712778 860w,\nhttps:\/\/images.mktw.net\/im-233149?width=1260&amp;size=1.5005861664712778 1260w\" alt=\"\" data-enlarge=\"https:\/\/images.mktw.net\/im-233149?width=1260&amp;size=1.5005861664712778\" \/><\/div><figcaption class=\"wsj-article-caption article__inset__image__caption\"><span class=\"wsj-article-credit article__inset__image__caption__credit\">NETFLIX\/COURTESY EVERETT COLLECTION<\/span><\/figcaption><\/figure>\n<\/div>\n<p>To manage our money better, often we don\u2019t need to know more. Instead, we need to unlearn what we think we already know.<\/p>\n<p>Here are just some of the things that, at various points in my 35-year investing career, I\u2019ve thought I\u2019ve known:<\/p>\n<div class=\"paywall\">\n<ul class=\"articleList\">\n<li>Which fund managers will outperform.<\/li>\n<li>Which way the economy is headed.<\/li>\n<li>What\u2019s next for interest rates and share prices.<\/li>\n<li>Whether the overall stock market is overvalued or not.<\/li>\n<li>Which individual stocks will beat the market.<\/li>\n<li>Which stock market sectors and national stock markets will fare best.<\/li>\n<\/ul>\n<p>Fortunately, this \u201cknowledge\u201d never greatly influenced my investment strategy. Still, I have little doubt that my portfolio\u2019s performance would have been better if I hadn\u2019t imagined that I knew these things\u2014and I certainly wouldn\u2019t have wasted so much time and mental energy.<\/p>\n<p>Why do we think we know such things? It\u2019s partly because Wall Street and the financial <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a> talk endlessly about these issues. The financial\u00a0<a class=\"icon none\" href=\"https:\/\/humbledollar.com\/2020\/03\/bad-news-2\/\" target=\"_blank\" rel=\"noopener noreferrer\">media<\/a>\u00a0needs to fill airtime, websites and printed pages. Meanwhile, Wall Street wants to convince you that you know something about the future, so you actively manage your portfolio and thereby fatten the Street\u2019s coffers.<\/p>\n<p>But not all the blame belongs to others. Our belief that we have knowledge also partly stems from the way we\u2019re wired. That wiring leaves us vulnerable to a host of behavioral mistakes, including\u00a0<a class=\"icon none\" href=\"https:\/\/humbledollar.com\/2020\/07\/keep-your-distance\/\" target=\"_blank\" rel=\"noopener noreferrer\">extrapolation<\/a>,\u00a0<a class=\"icon none\" href=\"https:\/\/humbledollar.com\/money-guide\/know-thyself-no-4-overconfident\/\" target=\"_blank\" rel=\"noopener noreferrer\">overconfidence<\/a>\u00a0and\u00a0<a class=\"icon none\" href=\"https:\/\/humbledollar.com\/money-guide\/know-thyself-no-3-focus-today\/\" target=\"_blank\" rel=\"noopener noreferrer\">recency<\/a>\u00a0bias, which together conspire to convince us that we know what the future will bring.<\/p>\n<div id=\"ad-inline-video\" class=\"j-ad\" data-site=\"marketwatch.com\" data-zone=\"retirement_story\" data-size=\"2x2,624x380\" data-targeting=\"product=inarticlevid;adlocation=INLINEVIDEO\"><\/div>\n<p>The problem: When we think we know something, we\u2019re inclined to act upon that knowledge. In the financial markets, action almost always triggers investment costs and perhaps big tax bills. If we mess with our basic mix of stocks and conservative investments, we may miss a big market move\u2014and any time we opt to reduce our overall stock exposure, we also lower our portfolio\u2019s expected long-run return. And if our purported knowledge causes us to make narrow investment bets, we risk a permanent loss of capital, as we bet on stocks and market sectors that could potentially plunge\u2014and never bounce back.<\/p>\n<p>Even if we put our hands on our heart and we swear we aren\u2019t inclined to forecast, predictions often creep into our behavior. We hold off investing because we sense share prices could fall. We tilt toward U.S. stocks because we think that they\u2019ll always outperform foreign markets. Instead of prudently diversifying, we hang on to the employer shares we\u2019re granted, because we can see that the company is prospering and we believe the stock price doesn\u2019t fully reflect that.<\/p>\n<p>What if we thought harder about such issues? No matter how much we analyze individual stocks, different market sectors and the overall market, there\u2019s no evidence we\u2019ll come up with a better forecast. Instead, our best bet is to not forecast. We need to unknow these things that we think we know, and instead focus on facets of investing where we have some\u00a0<a class=\"icon none\" href=\"https:\/\/humbledollar.com\/money-guide\/control\/\" target=\"_blank\" rel=\"noopener noreferrer\">control<\/a>\u00a0and where we truly can add value. We\u2019re talking here about the amount of portfolio risk we take, the investment costs we incur and the taxes we pay.<\/p>\n<p>There are also other areas of our financial life where hard work and more thought can pay handsome dividends. We can substantially improve our financial life by figuring out which debts to pay off first, what sort of home it makes most sense to buy, when to claim Social Security, what insurance we need and what estate planning steps we ought to take. We can also improve our life by spending more thoughtfully and saving more diligently\u2014and by putting in the hard work needed to change our own damaging financial\u00a0<a class=\"icon none\" href=\"https:\/\/humbledollar.com\/2019\/11\/breaking-bad\/\" target=\"_blank\" rel=\"noopener noreferrer\">behavior<\/a>.<\/p>\n<div id=\"cx-membership-tile\"><\/div>\n<p>To be sure, none of this has the seductive pleasure of making forecasts and imagining we\u2019ll be proven right. But over a lifetime of investing, that pleasure, alas, almost always carries a steep price tag\u2014and that\u2019s one thing we all need to know.<\/p>\n<p><em>This column originally <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>eared on\u00a0<a class=\"icon none\" href=\"https:\/\/humbledollar.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Humble Dollar<\/a>. It has been republished with permission<\/em>.<\/p>\n<p>By<\/p>\n<div class=\"author  hasMenu\" data-scrim=\"{&quot;type&quot;:&quot;author&quot;,&quot;header&quot;:&quot;Jonathan Clements&quot;,&quot;subhead&quot;:&quot;The Wall Street Journal&quot;,&quot;list&quot;:[]}\">\n<h4><span class=\"ez-toc-section\" id=\"Jonathan_Clements\"><\/span>Jonathan Clements<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<blockquote>\n<p style=\"text-align: center;\"><strong>if you want to watch Movies or Tv Shows go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/dizi.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Dizi.BuradaBiliyorum.Com<\/a> <\/span> for forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener noreferrer\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"http:\/\/www.marketwatch.com\/news\/story.asp?guid=%7BD1397EBC-D951-4104-B0F8-2DF627EFA175%7D&amp;siteid=rss&amp;rss=1\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Want to retire rich? Start by unlearning some conventional wisdom &#8221; If you want to watch Movies or TV series visit the Dizi.BuradaBiliyorum.Com NETFLIX\/COURTESY EVERETT COLLECTION To manage our money better, often we don\u2019t need to know more. Instead, we need to unlearn what we think we already know. Here are just some of&#8230;<\/p>\n","protected":false},"author":1,"featured_media":71439,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.mktw.net\/im-233149?width=1260&size=1.5005861664712778","fifu_image_alt":"#  Want to retire rich? Start by unlearning some conventional wisdom","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-71348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/71348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=71348"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/71348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/71439"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=71348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=71348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=71348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}