Back to Glenn's Library



Lessons from the Gym

One of my passions is bodybuilding, and I make it a priority to make healthy choices. I go to the gym on a regular basis and eat a healthy diet – as long as you don't count my Bacon Cheeseburgers and chocolate milkshakes at Five Guys. As an investment advisor and bodybuilder, I see many similarities between investing and exercising. For example, a recent study found that nearly 54% of Americans get the recommended amount of exercise. Coincidentally, 54% of Americans also invest in the stock market. The similarities between investing and exercising don't stop there. You may not realize that you can learn a great deal about investing by applying the keys to success in the gym.

Do Your Homework (or Pay Someone to Do It For You)
In order to get results at the gym, you must know how to use the equipment. Using a weight machine the wrong way or for the wrong purpose can be ineffective at best and dangerous at worst. Unless you use a personal trainer, you will need to learn about exercise and nutrition to achieve the results you desire. Investing is similar in that you must either learn about retirement funds, investment strategies, and planning or hire an investment advisor to do most of the work for you. Either way, it is important to understand the tools you are using to ensure they will deliver the results you desire. Do your homework and build your investment strategy wisely.

Results Take Time
We all know a consistently healthy diet and exercise will eventually make you more fit and help you lose weight. We also know these results don't happen overnight. You must put in the work every day and even then you may not see results for 6-8 weeks. Investing is similar in that you must put in the effort to consistently watch your spending, save well, and invest wisely. You have to be diligent in saving a certain amount of each paycheck and periodically review your investing strategy and retirement goals. The results from this work will most likely not be seen in several weeks but rather over a matter of months and years. Keep in mind that you are invested for the long-term and that patience is key to success.

There Are No Shortcuts
If you hang out at the gym long enough, you will inevitably hear "secret, guaranteed" weight training or weight loss tips. You may hear about things like over-the-counter diet supplements, fad diets, or five-minute abs that advertise immediate results but are actually unrealistic. Unfortunately, there is no shortcut to instant success. You have to do the work consistently over time to get the results. Investing is similar in that you may hear about a hot stock tip that is "guaranteed" to skyrocket overnight. It is tempting to believe that you can simply invest a lot of money in that one stock or in an actively managed fund (where the pros will trade on these hot stock tips for you), and you will be wealthy in no time. However, just like at the gym, there are no shortcuts in investing. Hot stock tips are generally given about companies that are highly volatile and exciting. They can swing down as much as up. Instead, your best bet is to invest in a well-diversified portfolio of "boring" low-cost index funds. Ignore the "sure-fire shortcuts" and stick with your investment plan.

Don't Expect Perfection
At the gym, there are days when you will post a new personal best when it comes to lifting weights or running farther and faster. There are also days when you will feel slow, tired, and sluggish. Investing is the same – the market has good days that make you feel quite satisfied. Unfortunately, it also has downturns that are unpredictable and sometimes quite painful. How you react to these setbacks is the key to how successful you will be in both exercising and investing. Clearly, you can always choose to panic and give up. It's easier to sit in front of the TV rather than go to the gym. It's also easier to keep your money in an extremely safe savings account earning very little interest rather than watching the balance drop when the market drops. A popular study by BlackRock researched the performance of a hypothetical $100,000 investment in the S&P 500 Index over the 20-year period from January 1, 1999 to December 31, 2018. It showed that an investment for the entire time period would have accumulated $298,293, while an investor who missed just five of the top-performing days during that period would have accumulated just $197,886. If you "give up" on the market and miss these important days, you could risk missing out on important gains. There are many "up" days in the markets. But expect that there will be setbacks and down markets as well. Take them in stride and stay focused on the long-term, knowing you will be successful eventually.

You can be successful at both investing and exercising. While these two activities are obviously very different, the keys to success are much the same.

If you have any questions about investing or are wondering how you can get started, I would be happy to meet with you for a no-cost consultation. You can e-mail me at gleest@wtwealthmanagement.com or call (928) 225-2474.

Sincerely,

Gleen Leest

Glenn Leest



Click here to view our Disclosure



WARRANTIES & DISCLAIMERS

There are no warranties implied.
Any opinions expressed on this website are the opinions of WT Wealth Management and its associates only. Material listed on this website is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. You should always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETF’s carry certain specific risks and part or all of your account value can be lost.

At WT Wealth Management we strongly suggest having a personal financial plan in place before making any investment decisions including understanding your personal risk tolerance and having clearly outlined investment objectives.

View Disclosure
WT Wealth Management is an SEC registered investment adviser, with in excess of $100 million in assets under management (AUM) with offices in Flagstaff, Scottsdale, Sedona and Tucson, AZ along with Jackson Hole, WY and Las Vegas, NV. WT Wealth Management is a manager of Separately Managed Accounts (SMAs). With SMAs, performance can vary widely from investor to investor as each portfolio is individually constructed and managed. Asset allocation weightings are determined based on a wide array of economic and market conditions the day the funds are invested. In an SMA, each investor may own individual Exchange Traded Funds (ETFs), individual equities or mutual funds. As the manager we have the freedom and flexibility to tailor the portfolio to address an individual investor's personal risk tolerance and investment objectives – thus making the account “separate” and distinct from all others we manage. An investment with WT Wealth Management is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Any opinions expressed are the opinions of WT Wealth Management and its associates only. Information offered is neither an offer to buy or sell securities nor should it be interpreted as personal financial advice. Always seek out the advice of a qualified investment professional before deciding to invest. Investing in stocks, bonds, mutual funds and ETFs carries certain specific risks and part or all of an account's value can be lost. In addition to the normal risks associated with investing, narrowly focused investments, investments in smaller companies, sector and/or thematic ETFs and investments in single countries typically exhibit higher volatility. International, Emerging Market and Frontier Market ETFs, mutual funds and individual securities may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles or from economic or political instability that other nations experience. Individual bonds, bond mutual funds and bond ETFs will typically decrease in value as interest rates rise. A portion of a municipal bond fund's income may be subject to federal or state income taxes or the alternative minimum tax. Capital gains (short and long-term), if any, are subject to capital gains tax. Diversification and asset allocation may not protect against market risk or investment losses. At WT Wealth Management, we strongly suggest having a personal financial plan in place before making any investment decisions including understanding personal risk tolerance, having clearly outlined investment objectives and a clearly defined investment time horizon. WT Wealth Management may only transact business in those states in which it is registered, or qualifies for an exemption or exclusion from registration requirements. Individualized responses to persons that involve either the effecting of transactions in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption. WT Wealth Management's website is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of WT Wealth Management's website should not be construed by any consumer and/or prospective client as WT Wealth Management's solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the internet. Any subsequent, direct communication by WT Wealth Management with a prospective client shall be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides. A copy of WT Wealth Management's current written disclosure statement discussing WT Wealth Management's registrations, business operations, services, and fees is available at the SEC's investment adviser public information website (www. adviserinfo.sec.gov) or from WT Wealth Management directly. WT Wealth Management does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to WT Wealth Management's web site or incorporated therein, and takes no responsibility therefor. All such information is provided solely for convenience purposes and all users thereof should be guided accordingly.

Contact Us Today

Call us directly at 928-225-2474
or Contact us by using the contact form below:

Your message has been sent. Thank you!


Cancel