The Right Way to Think About Regret – Presented by Mark K. Lund, Financial Advisor in Utah

Financial Advisor Utah“Regrets, I’ve had a few
But then again too few to mention”1

This memorable lyric from the song “My Way,” famously crooned by Frank Sinatra, describes what many consider to be the ideal way to look back on your life. It essentially says that the successful individual rarely makes mistakes. And when they do, they don’t spend much time reflecting on them.

The possibility of living a life without regret seems ingrained in our culture. There are dozens of self-help books on how to achieve this, countless motivational quotes around this theme, and (quite ironically) several tattoo parlors with “no regrets” in their name.

However, as author and executive coach Dan Solin points out, regrets are not only unavoidable in a successful life, but reflection on them is the most effective way to learn from past mistakes. 2

Solin cites Anna Gotlib, an assistant professor of philosophy at Brooklyn College, who believes the idea that you can live without regrets is ridiculous. “To have no regrets,” she says, “you have to think that absolutely everything you’ve done and everything that happened to you is perfect just the way it is, or you just don’t have the perspective to see that it’s not.”

A regret is simply acknowledging that you could have done something differently to achieve a better outcome. We often have them around actions we’ve taken that did not give us the result we hoped for. Occasionally we regret saying something to another person because it didn’t come out the way we intended or wasn’t received in a way we expected.

Regret can be emotionally painful because we can see what we should have done differently, but have no way to go back in time and take that alternate action. It’s not surprising that people want to avoid this feeling.

On the other hand, obsessing over past mistakes as a form of self punishment is not healthy either.

According to Amy Summerville, a professor of social psychology at Miami University Ohio, regret is “something that signals to people that we’re learning from our experiences and that we’re going to make changes as a result.”

Like the pain that causes you to quickly remove your hand from a hot pan, regret is something to be thankful for. It shows us where we have something to learn.

When it comes to money and investing, people have many regrets. These are often about spending too much, not saving enough, and not starting to put money away for retirement soon enough. But the prudent investor knows that since you can’t change the past, the best thing is to change your behavior going forward and chalk it up as lessons learned.

Looking at what turned out to be the hottest commodity, investment sector or region in the rearview mirror shouldn’t produce regret for the prudent investor. Disciplined investing requires knowing you can’t possibly be in just the right stocks or funds at just the right time. Recognizing the prudence of intentional diversification should be what keeps you from regret.

An additional note on “My Way.” Frank Sinatra did not like the song or its message. And as he was obliged to sing it night after night, he grew to loathe it.3 One of his regrets, ironically it would seem, was having to pretend to be a person who didn’t think he had any regrets worth mentioning.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020

Sources:
1. http://go.pardot.com/e/91522/lyrics-franksinatra-myway-html/93f9hj/1984651857?h=OvXTUHGS-yf9Tthxg4GonVGbucPklalsTB0KrubHJzc
2. http://go.pardot.com/e/91522/3-02-01-the-myth-of-no-regrets/93f9hm/1984651857?h=OvXTUHGS-yf9Tthxg4GonVGbucPklalsTB0KrubHJzc
3. http://go.pardot.com/e/91522/story-my-way-is-the-worst/93f9hq/1984651857?h=OvXTUHGS-yf9Tthxg4GonVGbucPklalsTB0KrubHJzc

Disclosure:
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

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