Betting on the stock market might be closer to gambling at the roulette table than you realize. Stop trying to predict the future and diversify your risk.    

Last time I discussed ways you can hang in there during tough markets. Let’s take a look at the consequences if you throw in the towel too early.

Have you ever worked a shift where nothing clicked? The CT scanner was down. On call docs refused to admit patients. The nurses couldn’t get IVs. You felt helpless and couldn’t control anything. You might feel the same way with your investment portfolio.

Despite the headlines, it’s been a solid year for investing. In fact, if you’ve been investing and you don’t have a far higher portfolio value now than you did two years ago, you may be in serious need of a new investment plan.

If you want to get a handle on your finances, simplify your life by cutting out the excess investments, advisors and fees that are weighing you down.

The fee and payment system in medicine is a big black box. Patients don’t know the true costs of medical care and we have no clue what bill the patient gets when we order all those tests. There’s a black box with financial advisors also: fees. I have not yet met a physician who knows exactly what fees he’s paying to his financial advisor.

A very busy emergency physician, Dr. Smith turned to a financial advisor – Frank – to handle his investments. Initially Dr. Smith was happy, but eventually realized he didn’t understand the investment strategy.

In financial advising, the magic “F” word is “fiduciary.” If your advisor doesn’t use this word,  watch your back.

Want to manage your wealth like a pro? Start by checking your ego at the door and avoiding these five classic financial planning pitfalls.

Recap from last month: Dr. Smith, a 45 year old emergency physician with a $500,000 investment portfolio, didn’t have time to manage his investments and hired Frank, a financial advisor at a big brokerage firm. To continue the story, upon transferring his portfolio to Frank’s firm, Frank tells Dr. Smith that after thorough research he uses only the best money managers.