If you are like most of us, you consume a fair bit of business and financial media. Maybe you listen to the financial radio station in the morning or watch a markets wrap-up at the end of the day. Or maybe you have CNBC on all day long on your TV. I bet sometimes, it makes you crazy.
Now that it’s June in Minnesota, the weather is finally nice. I humbly suggest that you make an effort to consume less financial media and go outside to enjoy this great time of year.
FIRST – The media is in the excitement business, not the business of helping you reach your goals. This is one reason I often refer to financial media as “financial pornography.” It’s exciting and holds your attention, but it’s not real. Remember, job one for the media is to keep you interested enough to watch the commercials.
SECOND – If you have prudently prepared for the reality that life, and the investment market, is unpredictable, then you don’t need to worry about the day-to-day. I talk to my client about the Certainty that life is Uncertain. By acknowledging this reality, we can manage the risks in each financial plan so that, no matter what happens in life or the markets, there is always a smart place to get money when you need it.
THIRD – Your Fiduciary CERTIFIED FINANCIAL PLANNER™ professional is always an advocate for your best interests. You can trust that your planner is on the job and will alert you if anything requires your action.
Fourth – Over time, the markets just go up. I often describe the performance of U.S. stocks as a yo-yo riding an escalator. From moment to moment and from day to day, stocks go UP and DOWN . . . a lot. But over time, they go up. Here are a couple of charts I like that illustrate this.
The longer you hold on to stocks, the more likely they are to go up in value.
The stock markets are volatile every year. For the last 43 years, the S&P 500 index has returned an average of 8.7% per year, but within EACH calendar year, there was one day when the value was down on average by 14.3%. Avoid the distraction of the temporary falls in price. Stay focused on the big picture.
Of course, the details of your situation are unique. So, if you want to talk in specifics about your investment accounts, I would be honored to visit with you. As a fiduciary financial planner, I’m always an advocate for my clients. I love talking with new people. Reach out and we can have a get-acquainted visit. Just follow this LINK to find a time that works for you.
Yes, I am a CERTIFIED FINANCIAL PLANNER™ professional. I’m always a fiduciary and I work on a fee basis. And yes, I’m still taking on a few great families to be part of my financial planning practice.
If this article has you thinking about your own circumstances, contact my office at firstname.lastname@example.org. I am always happy to meet with people who are working on their retirement plans. Dunncreek Advisors does not provide legal or tax advice, nor is this article intended to do so.