Grand Rounds: Be Afraid, Very Afraid
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Welcome to this session of grand rounds, a collection of posts I have discovered in the blogosphere and have found of interest and hope you do too.
This offering of Grand Rounds looks at articles from around the web with an emphasis on some psychological principles that can shape how you view the world.
Franklin Delano Roosevelt famously said, “The only thing we have to fear is fear itself.”
Unfortunately following this statement is much harder to do in practice, especially when it comes to investing.
Behavioral psychology is a fascinating field, especially when it can be applied to the financial world.
The Physician Philosopher elaborates on this in his post, “Your Fear Of Loss Impacts Your Finances.”
It seems that most trying point in any situation is the middle.
At this point self-doubt and worry creep in.
You are not near the finish line and by now you have lost the exuberance present when starting a new venture.
It’s also a time when a lot of individuals self reflect and assess their situation, often resulting in thoughts of negativity.
That is why it is so common to hear “midlife crisis” as people act out of character when they realize they are not happy with the path they are on, halfway through the journey.
Millionaire Doc shares a very insightful piece as he bravely shares what is swirling through his head at the mid point of his career in, “Mid-Career Crisis: How To Deal When Things Get Less Awesome.”
After four arduous years of medical school you finally receive your degree.
But is it more appropriate to say that you have been handed a diagnosis instead?
Although you may not find it in your ICD-11 (International Classification of Diseases), thankfully Urgent Care Career happened to stumble across a medical paper that may make it into ICD-12 called, “Diagnoses: Medical Professional.”
One of the better decisions in my career was when I decided to cut back my clinical hours and pay for 1 day of coverage a week.
Even though I was giving up 20% of my clinical time, by taking advantage of our progressive tax code the financial hit was far less, as I showcased in my post, “The Least Valuable Dollar.”
Turns out I may be on to something by reducing my clinical duties to four days a week, highlighted by this New York Times article, “A 4-Day Workweek? A Test Run Shows A Surprising Result.”
I have written previously the importance of creating an Investor Policy Statement so that you have a guideline to shape your financial decisions.
By having a concrete plan in place you will not be prone to making rash decisions during times of volatility.
Charles Schwab has created a Financial Decoder series and in Episode 5 goes over important aspects of why having a written plan can provide the necessary framework to see the broader picture and help an individual identify and account for various biases encountered.[The Financial Freedom Blueprint, an online course I reviewed, would be a great tool to help you set up with the necessary framework to succeed]
Hope you enjoyed the reading material.
Have a great rest of the week.
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Even a steadfast DIY’er can sometimes gain benefit from the occasional professional input.
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