If you’ve managed to pull together a strategy for your personal finances, odds are it’s not the right one for you.
That’s because many financial plans fail to consider the unique characteristics of an investor’s life, including his or her biases and the fluidity of investing goals, said Joe Duran, founder and CEO of United Capital.
“Almost every financial plan that’s ever been written is wrong,” he said.
“It’s wrong because it makes two assumptions that are almost certainly wrong,” Duran said. “One is that you’re average, and the second is that the markets will be average, too.”
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These strategies fail to consider how you respond to stress, as well as the fact that your goals over the course of your lifetime will change.
Here are the questions you need to consider to make sure your financial plan is working for you.