When Apple replaced AT&T in the Dow Jones Industrial Average recently, all previous performance for this commonly cited investment index became even less relevant.
Creating Financial Plans
The couple had made every mistake you could: retired too early, spent too much, took on too much house and too much debt. “This is killing me,” Sarah told the advisor, as she burst into tears.
Chasing a strong market is a lot like skiing a risky slope. The journey is thrilling, but perilous. Market highs often tempt investors to chase momentum, which sets them up for a dangerous fall. A less hazardous run is wisest for the long pull: Staying put and sticking to your risk level at all times.
If you’re a woman facing new life challenges – a successful proprietor of a growing business, an heir with a recent windfall or perhaps someone dealing with a fresh change in marital status or a recently diagnosed illness — then you’re in transition. You need to realize that you now have special financial needs.
What a lot of people don’t understand about financial advisors is that they are not there solely to plan your future. They are at your side when a present-day catastrophe strikes.
Waking up early in the dark morning and heading to the gym comes hard. Once your workout ends, though, you often begin the day with the payoff of a tremendous energy boost. Can the same process apply to your finances?
The market is unpredictable, however much you want to believe otherwise. Instead of trying (and failing) to time your entry and exit, you should structure a portfolio ahead of time that better handles market swings.
Your net worth is a barometer of your financial health. Regularly checking this number helps you assess where you’re at, measure your progress toward your goals and build a financial plan.
Taking care of your finances is your responsibility, but you don’t have to do it alone. An advisor, or better yet, a certified financial planner, comes in useful anytime, especially when changes in life create new financial obligations and challenges.
Financial planning takes time, often decades, to show its results. In the long run, wealth goes to those who have a plan – and a good advisor is the best way to make a smart one. Those with planners do better than those without.