FOMO in Financial Planning

Today, let's talk about something that might be keeping you up at night – FOMO, or the fear of missing out, and how it relates to what we call survivorship bias in investing.

You've seen the headlines, right? Tech stocks shooting through the roof, AI companies booming overnight, or remember that whole GameStop frenzy? It's tempting to think, "If only I'd invested in that!" But here's the thing – investing isn't about predicting the future or wishing you could go back in time. 

It's about making smart decisions with the information we have right now.

Let me hit you with two hard truths about investing:

1. There's no such thing as a sure bet. Nobody saw the dot-com bubble coming, or predicted how AI would shake things up.
2. Those sky-high stocks? They can come crashing down just as fast. We've seen it with the housing crisis and plenty of once-hot stocks that suddenly cooled off.

It's easy to get swept up in the hype. We all love a success story, but here's what the headlines don't tell you: consistently picking winners or predicting losers is like trying to catch lightning in a bottle.

Now, some people do like to gamble big, hoping for that jackpot. But more often than not, they end up losing their shirts. That part doesn't make the news as often.

This is what economists call "survivorship bias." We focus on the winners and forget about all the losers. It's like looking at a forest and only seeing the tallest trees – you miss the whole picture.

So, how do we actually give ourselves the best shot at investing, building wealth, and being satisfied with our decisions? 

Brace yourself, because it's not exactly headline material: it's all about strategy, diversification, and patience.

We pick a solid strategy and stick to it. We spread our investments around. We keep an eye on things and make adjustments when needed. And then we do it all over again, consistently.

Feeling frustrated that you missed out on the latest "big thing"? Or that your portfolio isn't as exciting as what you're seeing in the news? Please use the form below to send me a message, or give me a call. I'll help you see the whole forest, not just those few tall trees.

Remember, successful investing isn't about chasing trends. It's about staying the course for the long haul. Keep patient, stay diversified, and you'll be on track to hit your financial goals.