A common question that people ask me, especially at social functions, is What do you think the market is going to do? Now, I recognize why they’re asking but I don’t think they realize how wrong of a question that really is.
When it comes to investment planning strategies, you don’t want to try and predict what the market is going to do in the short run- it’s the long run that matters. And if you are not willing or able to wait out a big dip in the market a minimum of 5 years, then you should not be invested in the market at all.
So the single most important thing you want to consider when developing an investment plan is finding that strategy or strategies that complements not competes with your risk tolerance. That is what I call your sleep factor.
The reality is everyone’s situation is so unique and everyone has differing abilities to tolerate uncertainty and volatility in account values. That is the reason there is so many investment strategies at our disposal. So clearly it can be confusing. Most importantly remember that there truly is no one size fits all - nor is there a single best strategy.
Now, choosing the right investment strategy in our current economic environment is very challenging and can take more hours of research than you have available. So let me recommend you read the article in the Reading Room called – “11 ways to help yourself stay sane in a crazy market” or the one titled –“Handling Market Volatility”- because I think you need this knowledge in today’s economy.
Then if you’re looking for a strategy that I consider essential in any market, I recommend you read the one titled: “Asset Allocation”as this is a timeless piece everyone needs to be familiar with.
As you know, the purpose of this website isn’t so you have to do it all on your own.
It’s a complete resource, and I say that because we are standing by if you should need more help. So if you have a question, you can click the link above to schedule a Free 15 minute consultation. Take advantage of the opportunity to get your questions answered so you make the right choices.