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GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> After working for a major international brokerage firm, along with my own private asset management company, for nearly 20 years, I\u2019ve seen it all when it comes to money management<\/a>. From family feuds over inheritances to middle-class families being able to afford college for their kids, the profession offered me a front-row seat to the highs and lows of personal finance. <\/p>\n But through all the ups and downs, a few immutable truths revealed themselves time and time again. Here are the most important lessons I\u2019ve garnered from my nearly two decades in the industry<\/a>.<\/p>\n<\/p>\n Don\u2019t Let Your Emotions Lead You Astray<\/p>\n As Michael Douglas\u2019s character Gordon Gekko famously says in the movie \u201cWall Street,\u201d \u201cDon\u2019t get emotional about stock, it clouds your judgement.\u201d While coming from a fictional character, the sentiment is spot-on. Fear and greed are the two most dominant emotions when it comes to investing in the stock market<\/a>, and unfortunately, each one seems to pop up at the exact right time to encourage bad decisions.\u00a0<\/p>\n When markets scream higher, investors get euphoric. Conversely, when markets sell off sharply, investors get fearful, sometimes to the point of panic. These dual scenarios lead to situations in which investors buy high and sell low, when they should be doing the exact opposite. In the words of billionaire CEO Warren Buffett, investors should \u201cbe greedy when others are fearful, and fearful when others are greedy.\u201d Don\u2019t let your emotions twist this around and lead you to doing the opposite.<\/p>\n Your Most Important Financial Obligation Is Saving<\/p>\n When asked which financial obligation is the most important, many clients will list mortgage\/rent, food and household bills like utilities as essential. And while it\u2019s true that all of these bills must be paid, if you prioritize them ahead of your savings, you\u2019ll likely find that you end every month without any money at all to invest. <\/p>\n This is where the famous mantra \u201cpay yourself first\u201d comes into play. By setting aside money for your savings and investments before you pay any bills \u2014 via automated transfers, of course \u2014 you force yourself to live beneath your means<\/a>. If you find yourself coming up short in terms of paying your monthly expenses, it means it\u2019s time to trim your costs, not reduce your savings.\u00a0<\/p>\n<\/p>\n Draft a Clear, Unassailable Estate Plan<\/p>\n One of the saddest parts of being a financial advisor is watching how families tear themselves apart fighting for \u201ctheir share\u201d of an inheritance. Many of these family disputes can be nipped in the bud by drafting a clearly worded estate plan and sharing it with family members ahead of time. When your explicit wishes are mapped in advance and disclosed to all of your beneficiaries, you greatly reduce the chance of in-fighting among family members after your passing.<\/p>\n You\u2019re Not Likely To Beat the Stock Market<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
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