6 Bad Investing Habits to Quit with Mark Biller

Nov 19, 2024

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They say that winners never quit and quitters never win, but that’s not really true, is it? What if you’re trying to quit a bad habit?

It’s not only okay to quit a bad habit; it’s something we should always strive to do—especially with investing. Mark Biller joins us today with a list of bad habits you should quit if you find yourself doing them.

Mark Biller is Executive Editor and Senior Portfolio Manager at Sound Mind Investing, an underwriter of Faith & Finance.

Go Ahead, Be a Quitter

In a recent article titled “Go Ahead, Be a Quitter” at SoundMindInvesting.com, six bad investing habits are discussed as they explain why quitting them can lead to better financial outcomes.

1. Quit Standing on the Sidelines

One of the worst habits in investing is not starting at all. Time is crucial for building wealth, thanks to the power of compound interest—often referred to as the “8th wonder of the world.” Investing in well-managed, growing businesses, primarily through stocks, has historically provided returns that outpace inflation. So, instead of staying on the sidelines, become a part-owner of corporate America by investing.

2. Quit Waiting for a “Low-Risk” Entry Point

Trying to time the market is nearly impossible. Waiting for the “perfect” moment often means missing out on valuable time in the market. Over any five-year period, a diversified stock portfolio rarely loses money and frequently produces high returns. Consistency and patience, rather than timing, are the true keys to long-term growth.

3. Quit Looking for a Reason to Sell

Every financial expert seems to have a new doom-and-gloom prediction, but tuning into this noise can hurt long-term gains. Inflation—not market downturns—is often the biggest threat to wealth, and stocks are one of the best defenses against inflation. Instead of looking for reasons to sell, commit to investing long-term and avoid unnecessary panic.

4. Quit Making Things Complicated

Avoid drowning in economic forecasts, technical analyses, and frequent trades. Instead, pick solid investments and hold on to them. The simpler your approach, the easier it will be to stay the course.

5. Quit Obsessing Over Short-Term Results

Checking your portfolio daily can lead to emotional highs and lows, tempting you to trade based on short-term results rather than long-term goals. Instead, limit your portfolio checks to avoid unnecessary stress and stay focused on your broader financial objectives.

6. Quit Worrying—Trust and Invest with Peace

Instead of letting fear drive your investment decisions, remember 2 Timothy 1:7: “God has not given us a spirit of fear, but of power and of love and of a sound mind.” Trust in God’s provision, follow His principles, and invest from a place of peace rather than anxiety.

For more on these principles, check out his full article, “Go Ahead, Be a Quitter,” at SoundMindInvesting.org.

On Today’s Program, Rob Answers Listener Questions:

I'm considering withdrawing $20,000 to $30,000 from our $148,896 IRA to help purchase a new one-floor home for my husband. What are your thoughts on this, and what would the tax implications be?
I need some money to keep safe and liquid, as the high-yield interest rates I've been getting are about to go down. I may need to use this money to buy my mom's house for my sister in the future. What would you recommend as a safe investment option that can still provide a decent yield while keeping the money accessible?
My wife and I are looking to invest in a faith-based way, focusing on index funds and ETFs. Do you have any specific low-cost, faith-aligned recommendations we could consider for our investment portfolio?
I want to share how reading the True Riches book has changed my husband's and my approach to finances as a church. We've canceled our Amazon Prime membership to reduce materialism, and we're learning to be more intentional with our spending and generous beyond tithing. The book has really shifted our mindset to a kingdom-focused perspective on managing our resources.

Resources Mentioned:

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