It's easy to get caught on the emotional roller coaster when reading and listening to the news and media. It's all doom and gloom about the economy and markets. In fact, if you look at Time magazine covers over the last 40 years (approximately) you wouldn't be able to tell which decade or even year they were from - because the message hasn't changed "economy in trouble"
After all, even when there is good news it may make the last 5 minutes of the news. Here's a newsflash for you "Fear sells and the media uses this emotion to improve readership"!
There is so much available information out there, especially on the Internet. Please consider the source and what may be the driving force behind it. Sometimes you are not getting fact but opinion. Side Note: Your advisor should be talking about historical events and showing you something called an "andex" chart.
Remember this one piece of advice: The media does not consider a long-term approach to investing when they are coming up with content for stories. When we are heading into a recession our fear based actions actually cause it to happen earlier and to a much greater degree. Please do not let the media derail you from your long term disciplined approach.
When it comes to investing, your actions should be the opposite of your emotions and that is the number one reason why it is important to use a planner or advisor who is relying on education and experience and will keep you on track. When markets are down (like right now) it means share and stock prices are on sale, so get in! Buy! It's an excellent time. Your time frame is a very important deciding factor on the types of investments you should consider.
Market Volatility is not new or uncommon. Understanding market cycles and knowing it's all a normal part of investing may help lessen your concerns. These downturns have happened before, and I can tell you, they will happen again.
Don't panic, like anything else use expert advice from someone who you feel cares about your family and the freedom that your plan can mean for you.
Friday, August 5, 2011
Wednesday, July 27, 2011
The 5 Ages of Can't
I found this article at my office today and the title caught my eye and I wanted to share:
The Five Ages of "Can't"
At every stage in life there always seem to be other priorities that prevent you from putting a financial plan in place.
1 - Ages 21-30
"I can't save now. I am just getting my start in life. I don't make a lot yet, and I am entitled to a little fun when I am young. There's plenty of time. Wait until i start making a little more...then I'll save.
2 - Ages 31-45
"I can't save now. I've got a growing family on my hands. Children and a house cost a lot of money. It takes all I have to keep them going. As soon as they are a little older, it'll cost less. Then I'll save."
3- Ages 45-55
"I can't save now. I've got two children in college. It's all I can do to pay their expenses. In fact, I had to borrow for their tuition last fall. This is the most expensive period in my life. I can't save a penny."
4 - Ages 55-65
" I can't save now. I know I should. It's not easy at my age to step out and get a better job. I'll be lucky to ride along where I am. Maybe I'll get a lucky break..."
5- Age 65
"I can't save now. We're living with my son and his wife. My $125 a week from Canada Pension doesn't go far. I wish I had started saving 20 years ago, but it's is too late now. i can't save now where there's no income."
The end.
Quotes:
"Where you find yourself tomorrow is a function of the positive decisions and actions you take today."
"The way to get started is to quit talking and begin doing." - Walt Disney
A note from me:
You could read this blog post and think, hmm good advice (for someone else) but not me. Or you could have a little faith in yourself that you can make small steps and changes towards a more satisfied version of you. Making decisions that feel good have a snowball effect throughout your whole life - one leads to "wow that felt better than I thought, what other areas can I start to tweak a little bit just enough to change the direction of momentum"
With Love,
Grace
The Five Ages of "Can't"
At every stage in life there always seem to be other priorities that prevent you from putting a financial plan in place.
1 - Ages 21-30
"I can't save now. I am just getting my start in life. I don't make a lot yet, and I am entitled to a little fun when I am young. There's plenty of time. Wait until i start making a little more...then I'll save.
2 - Ages 31-45
"I can't save now. I've got a growing family on my hands. Children and a house cost a lot of money. It takes all I have to keep them going. As soon as they are a little older, it'll cost less. Then I'll save."
3- Ages 45-55
"I can't save now. I've got two children in college. It's all I can do to pay their expenses. In fact, I had to borrow for their tuition last fall. This is the most expensive period in my life. I can't save a penny."
4 - Ages 55-65
" I can't save now. I know I should. It's not easy at my age to step out and get a better job. I'll be lucky to ride along where I am. Maybe I'll get a lucky break..."
5- Age 65
"I can't save now. We're living with my son and his wife. My $125 a week from Canada Pension doesn't go far. I wish I had started saving 20 years ago, but it's is too late now. i can't save now where there's no income."
The end.
Quotes:
"Where you find yourself tomorrow is a function of the positive decisions and actions you take today."
"The way to get started is to quit talking and begin doing." - Walt Disney
A note from me:
You could read this blog post and think, hmm good advice (for someone else) but not me. Or you could have a little faith in yourself that you can make small steps and changes towards a more satisfied version of you. Making decisions that feel good have a snowball effect throughout your whole life - one leads to "wow that felt better than I thought, what other areas can I start to tweak a little bit just enough to change the direction of momentum"
With Love,
Grace
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