Investing Backwards: The Mistake Most DIY Investors Make

Over the years I have sat across from a lot of capable, intelligent people who manage their own investments. They tend to be successful in their careers, disciplined with their money, and genuinely engaged in their financial lives. And yet many of them are making the same quiet mistake. It has nothing to do with intelligence and everything to do with the order in which they do things.

They build a portfolio first and look for a plan later. The better approach runs in exactly the opposite direction. There are 2 ways to build a portfolio: