Risk

Don't gamble with your future.

Those who “play” the stock market hope to become rich. But they are more likely to become poor.

That’s because “playing” the market — frequent buying and selling — is akin to playing roulette. And compulsive trading could turn you into a gambling addict.

Markets crash all the time. You should, at minimum, expect stocks to fall at least 10% once a year, 20% once every few years, 30% or more once or twice a decade, and 50% or more once or twice during your lifetime. Those who don't understand this will eventually learn it the hard way.

Someone emailed me last week asking why this is:

Since 1926, if you invested in the S&P 500 for any 16 year rolling time frame, you experienced a positive return 100% of the time. For all 10 year rolling time frames since 1926, you experienced positive returns 94% of the time. This shows that, historically speaking, if you invest for long enough the possibility of permanent loss is ZERO, AKA zero risk. 

Markets crash all the time. You should, at minimum, expect stocks to fall at least 10% once a year, 20% once every few years, 30% or more once or twice a decade, and 50% or more once or twice during your lifetime. Those who don't understand this will eventually learn it the hard way.

Someone emailed me last week asking why this is:

 A post-secondary degree is proving more and more beneficial to earn a foothold in the workforce. There are many ways parents can tackle the daunting task of raising a child and then helping them with higher education costs. Contact a CFP® Professional TODAY for help in creating a financial plan that draws a roadmap for accomplishing all of your financial goals!

Markets crash all the time. You should, at minimum, expect stocks to fall at least 10% once a year, 20% once every few years, 30% or more once or twice a decade, and 50% or more once or twice during your lifetime. Those who don't understand this will eventually learn it the hard way.

Someone emailed me last week asking why this is:

Our behaviors produce the results we see in our lives.

What’s The Difference?

When I first start talking to a new client, I often discover that they have a financial plan. At some point in the past, they worked with a financial planner who helped them build a plan that was probably a good one for their needs at that time. But then… The plan sat on the shelf. The details of the plan were not fully executed.