Creating a financial plan may seem overwhelming to those that have never completed one, but taking the first steps to creating a plan is much easier than you may think.
Planting a Seed
For many Americans, the art of saving is something that they have yet to master. This is especially true for those who have just entered the workforce or have gotten their first good-paying job. The mantra of these young professional men and women is often to want to spend instead of saving, and it might be time that changed.
It can be tempting to have extreme thoughts when it comes to investing. After all, public markets can increase or decrease by as much as several percentage points per day! Yet, be sure to keep calm and follow your financial plan. This includes having a risk-adjusted asset allocation and knowing your time horizons for various financial goals.
Riding the highs, and experiencing the lows, it is the way of the investment market. However, what if we told you that the key to sound and quality investing is learning how to keep it cool when the market is in turmoil? In this article, we are going to look at some of the tools that can help you manage your emotions and expectations during market uncertainty.
The final post in this three part series is what to do during the panic. Here is my section answering that question briefly and succinctly. We are monitoring client portfolios and will make recommendations when appropriate for you.
While it is too late to change what we did before this episode, it is helpful to think through what prudence looks like in investing. Right now, in the middle of the downturn, it is good to reflect on what your risk tolerance actually is. Here is the next section in my chapter on preparing for a pull back.