If you’re a client, you know we often discuss three primary barbarians that are always trying to attack your “financial castle.”
- Taxes
- Healthcare
- Behavior
Today let’s quickly discuss investment behavior.
It typically starts with the phrase, “I just heard in the news…”
Generally, whatever comes next is pulling you away from our dollar-specific date-specific plan.
“We should sell stocks and buy bonds.”
“Maybe we should sell bonds and buy stocks.”
“I need to sell everything and buy beer, bourbon, and bullets.”
In 20 years, I feel like I’ve heard it all (Iraqi Dinar, Gold, Silver, Real Estate, Water, Infrastructure, Private Credit, Cryptocurrencies, Meme Stocks, NFTs, etc…).
It all comes down to one word: FEAR
It’s either the fear of loss (the next bubble) or the fear of missing out.
These emotions are obviously normal; it’s our lizard brain trying to keep us safe.
However, at Know My Plan, our job is simple:
- Understand your goals
- Build your plan
- Fund that plan with a portfolio designed to meet your goals
- Ignore the noise, stay the course, remain impartial
Simple. Not easy.
There’s always a natural desire (or curiosity) to invest in the most speculative parts of the market and take undue risks. This is nothing new—maybe feels moreso today than in other times, but it always exists.
Here is the big question: Do you feel like you need MORE than the historical full return of the market to fund your plan?
For our clients, I can assure you that the answer is “No.”
We aim to be a rational guide in good times and in bad times.
Stay disciplined. Work the plan.
–Nic
