Investing and Maximizing Your Financial Potential

This episode is all about investing and how to be an owner, not a loaner—one of my favorite topics.

A CRNA client once told me that if she practiced anesthesia the way she’d been investing, she’d kill half the people she saw. When it came to her work as a CRNA, she would never prescribe a drug before reading peer-reviewed evidence to make sure all the trials went well.

But when it came to investing, she assumed that she should be able to use her intuition to make good decisions. After all, she was smart and informed. How hard could it be to pick a few winners?

Well, part of the investor’s dilemma is that no matter how much data we have about the past, we have no data about the future. No matter what history says about the long-term upward trend of the stock market, we still don’t know for sure what the future will bring. So, after all the spreadsheets are put away, investing ultimately becomes a matter of faith.

Now, this act of faith is most evident when it comes to the stock market. We have to ask ourselves if we believe that stocks will continue to do better than bonds, and bonds will continue to do better than cash, just as they always have.

If we can accept this basic framework, then temporary declines, no matter how terrifying, are just part of the deal. And while this doesn’t make investing easy, it does make it easier.

You work hard for your money, and one of the greatest benefits of owning more is making your money work for you. It’s about owning versus owing. Let’s break it down.

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