You should read the first part of this article if you have not. A lot of the things that were mentioned there are applicable here as well and I won’t repeat them.
We are emotional beings and logic is never enough for us to make decisions or act. Taken to the extreme, most of our decisions are even more emotional than logical. Of course, in this article, I explained these emotions and how to deal with them.
But there’s another layer to having someone else manage your money for you that I will address here.
The only thing you have to worry about
Managing your money yourself means you have to take full responsibility for good and bad decisions. And that may be your style.
However, once you give another person the responsibility to manage your money for you, you have given them the responsibility to make those decisions for you.
In that case, all you have to worry about is their ability to worry about their ability to make the best decisions in times of crisis. Remember, everyone is a genius in a bull market.
How you determine that is not rocket science.
- Check the composition of the team since it is a human being that will make the decisions
- Stay up to date with their communication channels
- Also, ask them questions
Do this and you will gain enough confidence to trust them.
Trusting them will save you from the need to act in a counterproductive way by liquidating your investment.
PS: Don’t liquidate until you tick the box of trust.