Main Reasons To Keep It Simple

The main reasons to ‘keep it simple’ in the realm of investing are: (1) Added complexity does not necessarily add value. (2) A simple approach focuses on the most important factors. (3) Keeping it simple reduces the clutter and strips out the noise. (4) Something simple is easier to understand and manage. (5) Keeping it simple promotes transparency which facilitates trust. (6) Complexity/sophistication is associated with additional cost(s). (7) Complexity/sophistication speaks more to the ego than the head. (8) A simple approach helps take emotions out of the investing equation. (9) Simplicity reduces the temptation to make changes. (10) A simple plan allows you to more easily determine whether the advertised benefit is actually being delivered.