In mid-2020, I got a call from a new client—let’s call him Mark.

Mark had a good income and a sizable investment portfolio, but no real financial plan. He’d built a collection of accounts and funds over time, some suggested by a bank, others by a friend, none of it tied to any clear purpose.

When the market dropped nearly 30% in March 2020, he did what many investors do when fear takes over: he sold everything. Went to cash. Then sat on the sidelines for the next 3 to 4 months.

By the time he re-entered the market, it had already recovered. The damage was done. He locked in a five-figure loss—one that could have been avoided.

Mark wasn’t greedy. He wasn’t reckless. He just didn’t have structure.
And when things got painful, he had no plan to anchor him.

That story stuck with me.

Because Mark is smart.
He’s disciplined.
He’s successful in his career.

But investing doesn’t reward those things.

It rewards behavior.

That’s why I keep coming back to the work of Morgan Housel, author of The Psychology of Money. His ideas changed the way I think about volatility—and how I guide clients through it. Here are three mindset shifts that made the difference.

1. Volatility is a fee, not a fine.

Most people treat market drops like punishment—like they did something wrong.

But volatility isn’t a sign that something’s broken. It’s the price of admission for long-term growth.

You pay for coaching.
You pay for a good accountant.
You pay more for better tools.
Why expect investing to be free?

When you see volatility as a fee—not a fine—you stop trying to avoid it. You start planning for it.

2. Simplicity beats complexity.

The more complicated your portfolio, the harder it is to stick with it.

Every added layer is another decision point—another chance to second-guess, panic, or freeze.

When Mark showed me his accounts, he couldn’t explain what any of it was for. That confusion led to fear. And fear led to action.

Here’s a simple test:

• Can you explain your investment plan in one sentence?
• Would you stick with it in a 30% crash?
• Does it run without constant attention?

If not, simplify.

3. Patience beats intelligence.

We’re wired to act fast when something feels wrong. That works in business. It works in medicine. It does not work in investing.

Markets fall. That’s part of the deal.

But staying put when things feel chaotic—that’s where real results come from.

The smartest investors I know aren’t the ones with the most complex portfolios.
They’re the ones who don’t flinch when things get hard.

What happened to Mark isn’t rare. I’ve seen versions of that story more times than I can count. That’s why structure matters. That’s why working with a real planner matters.

A good investment strategy is built to survive downturns.
A great one is built around your behavior.

If your current plan doesn’t help you stay calm in the storm, it might not be a plan at all.