Financial New Year’s Resolutions That Work with Peter Mallouk (CEO of Creative Planning)
Dec 30, 2024
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Peter Mallouk, CEO of Creative Planning, shares valuable insights on making New Year’s financial resolutions stick. He emphasizes the importance of setting achievable goals and automating financial decisions for success. Listeners learn about common investment mistakes to avoid and the emotional biases that can cloud judgment, such as panic selling and trend-based buying. Mallouk also discusses navigating inflation in the current economy, urging a disciplined approach to investment planning for a stable financial future.
To achieve financial goals, it’s essential to set smaller, attainable bridge goals and automate savings for consistency and success.
Avoiding common investing mistakes like market timing and active trading can significantly enhance long-term returns and reduce financial risks.
Deep dives
Empowering Hosts with Co-Hosting Services
Airbnb has introduced a co-host network to assist property owners in managing their rentals without the need to be physically present. This service is particularly beneficial for those who own vacation homes in distant locations, allowing them to delegate tasks such as managing reservations, communicating with guests, and maintaining the property. By utilizing a co-host, hosts can continue to earn rental income even while traveling for work, thus alleviating the stress of preparation and upkeep. The co-host model provides an efficient solution for maximizing rental potential while minimizing the workload for property owners.
Sticking to Financial Resolutions
Making financial resolutions requires more than mere motivation; it demands consistency and actionable steps. Automating savings and investments can significantly enhance the likelihood of achieving financial goals, as it eliminates the need for active decision-making each month. Instead of setting lofty targets, individuals should establish bridge goals—smaller, more attainable milestones that lead to larger aspirations over time. This structured approach ensures that financial commitments become habitual, rather than overwhelming or easily forsaken.
Avoiding Common Investment Pitfalls
Investors often fall prey to behavioral biases and misconceptions about market dynamics, leading to detrimental financial decisions. One major mistake is market timing, where individuals attempt to buy low and sell high based on short-term market fluctuations, often leading to underperformance. Additionally, active trading can result in increased taxes and missed opportunities for compound interest, as funds may be idly sitting during frequent trades. Educating oneself about the difference between risk and volatility, as well as the importance of having a disciplined investment strategy, can help mitigate these risks and enhance long-term returns.
Let’s harness the New Year energy and make 2025 a good year for our wealth, shall we? To help you do exactly that, Nicole sits down with Peter Mallouk, CEO of the award-wining wealth management and investment advisory firm Creative Planning. Peter shares what you can do to make your New Year’s resolutions actually stick, and what common investing mistakes we should all leave in 2024.
If you want some help making a strategy for your 2025 financial goals, set-up a free 15-minute consultation with Creative Planning at creativeplanning.com/nicole
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