How Much Volatility Before Your Financial Goals Are Impacted?

Volatility is an unavoidable part of investing. One thing we know for sure with our investments is that nothing is static.

The amount of volatility experienced is the result of portfolio positioning, which can range, at a very basic level, from very aggressive to very conservative. The more aggressive you invest the more volatility you’ll experience over time and vice versa.

My question to you, today, is “Do you know how much volatility you can afford before you must reduce your spending or adjust other financial goals?”

If you, or your advisor, don’t know the answer to this question then how can you/he/she possibly know how to invest your portfolio? Continue reading “How Much Volatility Before Your Financial Goals Are Impacted?”

The Importance of Financial Planning

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”