Executive Summary: I work out at a gym whose motto painted on the wall is “Stronger Than Yesterday.” This motto has nothing to do with anyone else. It’s solely about being better than you were the day before. It’s about constantly improving and doing the right things each day to continue moving in the right direction. Focus on the process. Enjoy the journey. It’s the same when it comes to your finances. Don’t worry about anyone else. What they are doing is irrelevant. Get your plan in place and then do the right things everyday to keep marching towards the goal of true financial independence…financial freedom…whatever that may mean for you. Continue reading ““Comparison is the thief of joy.””
Yesterday, I wrote about why financial planning is so important. I included an actual case study of how a robust financial plan can help shape your investment strategy to give you a better chance of achieving your financial goals and preserving your financial independence across a variety of market environments. In that commentary I introduced the concept of “Sequence of Returns Risk.”
Sequence of Returns Risk is absolutely critical to understand especially for folks within 5 years of retirement or who have retired within the last 7-10 years. Continue reading “What is “Sequence of Returns Risk” and Why Should You Care?”
This lull in market volatility provides a good opportunity to step back and look at the bigger picture…. the importance of a financial plan.
There are so many important financial decisions and questions that can be shaped and answered by a robust plan. It does far more than simply helping determine if you’ll be able to retire when you want and how you want.
But, today, let me focus on just one interesting example of how a robust plan can help you make better investment decisions and increase your probability of remaining financially independent in a variety of market environments. Continue reading “The Importance of Financial Planning”