I continue to see headlines about recessions, rate cuts, jobs reports, non-farm payroll stories–Lots of economic fear and it’s caught many by surprise.
Yes, over the past 45 days, market gyrations have certainly increased and many of the things I’m seeing in the headlines also seem to be very complex.
For us, in times of extreme noise and complexity, we like to bring things back to our goals-based written financial plans.
How does all the “stuff” affect YOU and YOUR plan?
I would suggest that for most long-term investors with investments in companies that have weathered the ups and downs of various market cycles, not much at all.
Most Know My Plan clients currently have low-cost diversified portfolios made of up strong, historical, enduring companies.
I’ll never pretend to be good at forecasting market movements. No one else really should either. That’s why we advocate staying fully invested at all times.
I can’t imagine that The Hershey Company sold fewer Hershey Bars, Kit-Kats, Twizzlers, Pirates Booty, Skinny Pop, or gum over the past month.
I can’t imagine that McCormick & Company sold significantly less bottles of Frank’s Hot Sauce or Old Bay Seasoning nor did Johnson & Johnson sell fewer boxes of Band-Aids.
The repetitive bottom line: It all comes back to YOUR plan!
• The planning process always starts with what’s most important to you and your family (your goals and values).
• From there, we assign a time frame to each of the underlying goals (Ex: Jill is going to college in eight years).
• Then we work the plan to determine how much to invest every month between now and the goal date to give us the best chance of funding the goal.
Financial planning doesn’t have to be complicated. We make it simple but recognize that it’s also not easy.
The hard part; discipline. To fund lifes most meaningful goals (retiring early, staying retired, living life on your terms, enjoying financial flexibility, creating intergenerational wealth, etc.), it means that you must start with a plan and stay on that for decades, not days.
Can folks do it themselves, sure they can. However in my 20 years in the business, I will confidently tell you that I’ve seen a lot more success with the people that are aligned with a valued, non-biased guide who can help navigate the ups and downs in real-time.
If you or someone you’re close to is a high-achieving professional that could use help aligning their finances and establishing a financial plan, please reach out to us, we’re accepting new clients and eager to help.
Cheers, Nic
P.S. Please take a moment and check out the chart below. With the 2024 Presidential Election just two months away, I think it is a good reminder to never mix politics and portfolios.
I share the chart with you because I don’t know if I’ve seen a better example of the “Buy & Hold” benefits versus those dipping in-and-out trying to time the market.
