Simple or Simplistic? Which gets you to financial independence?

Most people want to help keep their investment planning and lives simple, but they don’t want to risk their futures with overly simple guidance. This is a critical distinction, and those that understand it tend to have better outcomes.

In this context “simple” should mean “easy and helpful.” Simplicity happens when you do the hard work of working and saving/investing enough, while objective experts do the hard and right work of financial analysis and regular portfolio maintenance for you. Doing the latter right involves diligent, complex, disciplined, expert analysis, as well as filtering information, avoiding fads and applying decades of experience.

“Simplistic,” however, means acting as if complexity were simpler than it actually is, which can harm goal achievement. Simplistic is “easier” for do-it-yourselfers, financial professionals who take that path, and typical automated services. As is the case in many areas of life, however, cutting corners often means easier now, but harder later, when goals become less obtainable.

Most people who meet their goals are committed to the outcome they seek, through good and bad times, and maintain focus and a long-term perspective. They are not immune to occasionally feeling nervous about the future, but are confident the objective advice and support they receive will help them get there.