Long-term vs. Short-term

“I Want It Now!”

The Christmas lights at the entrance of my neighborhood ushered in the Christmas season the day after Halloween.

This also means that the season of delayed gratification has officially begun for my kids.

Normally, when my kids ask for an essential clothing item such as new shoes, we jump on Amazon and they have shoes the next day.

During this season just about every request (including new shoes when their current ones are too small with their toes sticking out the end), must be waited on and wrapped under the Christmas tree.

While it helps mom and dad fill the space under the tree with practical, necessary gifts, it also provides the opportunity for the kids to learn about delayed gratification.

Delayed gratification can be a tough lesson in life for kids and adults, but even more so for adults when it comes to investing.

Smart investing delays gratification, especially with equities, by being a long-term investor. Yet, it can be the hardest thing to do.

In the short-term, volatility can be severe to the upside and downside.

In the long-term, volatility appears much more smooth and rational.

In the short-term, it can be unclear what direction the market is heading.

In the long-term, the market over time has closed higher and higher.

These are just a couple of the differences between short-term and long-term investment thinking, and there are many more.

In order to be a successful retirement investor, you must know which portion of your investments are going to be used in the short-term for income, and which portion are to accumulate for the long-term and future income.

If you’re not sure, schedule a review of your investment portfolio by requesting a 22-Minute Retirement Success Conversation.


“The ability to focus attention on important things is a defining characteristic of intelligence.”

– Robert J. Shiller

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