Real lifetime returns…

To generate real-lifetime returns, one must focus on:

1. Process and Planning
2. Asset Allocation
3. Diversification
4. Selection
5. Managing Your Behavior

The portfolio composition can control only 10% of long-term real-life returns, 90% includes:
a. Your personal value-based plan
b. Percentage of equities (ownership of great companies)
c. Disciplined diversification within the equity asset class
d. Capturing the full ride of equities with full volatility

Over the investing lifetime of a family, it doesn’t matter whether you selected an equity portfolio based on past performance, fund manager, economy, market trends, growth or value, small-cap, large-cap, sector, thematic, emerging market, or global market — all of these factors together matter only 10%.

95% of your conversation with your advisor should be about your values, life plans, fears, and insecurities, while only 5% of the discussion should be about the portfolio.