I recently revisited an old article by Morgan Housel titled Little Rules About Big Things, and one line jumped off the page:

This simple rule captures one of the most important (and most overlooked) principles in investing.

In theory, most investors would agree that long-term damage is what matters most.

But in practice?

Daily noise, headlines, and fear-based narratives often make it nearly impossible to tell the difference between real risk and mere distraction.

Let’s fix that.

Life Insurance: Smart Strategies for Protecting Your Retirement Learn the three essential steps to managing insurable risks, the key differences between term and permanent life insurance, and the exact questions to ask before buying (or keeping) any policy. 🎙️ Listen now on ​Apple​, ​Spotify​, or ​YouTube​.

The Real Investing Risks Most People Ignore

Here’s a reliable shortcut: If it's in the news, it’s probably a temporary risk.

That may sound radical, but test it yourself.

Pick any newspaper from any year.

Read the headlines (war, inflation, elections, scandals, etc.) and ask yourself:

Very few.

Some events reshape the world—like 9/11 or COVID—but even then, their impact on long-term investing decisions was short-lived.

Airport security changed permanently.

But portfolios? They moved on.

This is the key distinction: headline risk is usually temporary.

It may hurt for a moment, but it rarely leaves a scar, unless we let it.

Which brings us to the risks that do cause lasting harm…

Unlike the risks blasted across cable news or social media, permanent damage usually comes from our own decisions.

It’s not what happens in the world; it’s how we respond.

Here are some of the most common ways investors unintentionally inflict lasting harm on their own plans:

• Underdiversification: Relying too heavily on a single stock or idea. Think concentrated company stock positions or chasing the latest hot sector that just had a good run.
• Letting Taxes Drive Decisions: Holding on to an imprudent investment just to avoid capital gains. Remember, paying taxes on a smart decision is far better than avoiding taxes on a bad one.
• FOMO Investing: Jumping into hype (crypto, AI, SPACs, meme stocks) because it feels like everyone else is getting rich. If you don’t fully understand it, you probably shouldn’t own it.
• Panic Selling: Selling out during downturns or bear markets. This is the quickest way to turn temporary harm into permanent loss.
• Leverage: Borrowing money to chase higher returns. It can work… until it doesn’t. And when it breaks, it breaks hard.
• Chasing Safety at the Wrong Time: If your plan requires 7–8% returns but fear pushes you into investments earning 4–5%, you’re not being safe—you’re quietly falling short.

What These Risks Have in Common

They’re not caused by market forces, world events, or government policies.

They’re behavioral.

They stem from fear, greed, or inertia. And unlike the market, they are within your control.

That’s why this principle matters so much—especially in retirement, when every decision carries more weight.

The good news? Most permanent investing mistakes are entirely avoidable.

As Housel puts it:

Bottom Line

You don’t need to predict recessions, time the market, or guess the Fed’s next move.

You just need to avoid the avoidable.

That’s what our planning is built to do—minimize the risks that matter most and help you stay focused on the one thing that defines success: achieving your goals.

📚 What I've Been Reading

• 3 Common Mistakes Made by ETF Investors (ETF Central)
• How Fund Fees Predict Past Performance (Basis Pointing)
• Social Security Is the Most Valuable Thing Americans Have (Jeff Sommer)
• Don't Over-Optimize Money, Relationships, or Time (Mr Stingy)
• Is There More to Life Than This? (More To That)
• Studies Show Technology Can Stave Off Cognitive Decline (Reasons To Be Cheerful)

Thank you for reading!

Please reply to this email with comments, questions, and/or feedback.

Stay wealthy,

Taylor Schulte, CFP®