Expert Contributor
Guard Against Too Many Eggs In One Basket By Joe Morgan, CFP®, CFA, Principal: Best Financial Life, Resident since 2004
It happens to all of us. We begin to feel that what the markets or a single investment are going to do is obvious. It must go down (or up?) from here! We are barraged with information from the news, our neighbors and ads that have convinced us that there is only one possible thing to invest in (FANG stocks! Or maybe Cash!), and we feel compelled to action. Before you actually do anything, ask yourself these three questions: First, if this goes well, how would your life be different? Not just in the short term, but the rest of your life. Pause here and really think about this. If this goes wrong – I mean totally wrong
– how would your life be different? Would it delay retirement? Would your wife have to go back to work? Now, pause here and, again, really think about this. Have there ever been things that you were certain about in the past that didn’t work out as you expected? You see, it could be that our emotions are trying to carry us away from our rational, long-term strategy. Yes, the above is a bit of a trick, but it’s a righteous trick. It is designed to keep you and your portfolio on-track, because the performance of your portfolio is not what’s important. Instead, the success of your plan is important – it’s the only thing that’s important.
For more detail, go to https://bestfinlife. com/blog and let’s start calibrating your path to clarity! Best Financial Life is a Registered Investment Advisor with the State of California and Joe Morgan is a fiduciary to his clients at all times. If you’d like to ensure your finances are on the right track, schedule a call with Joe at www.calendly. com/bestfinlife.
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