What to Expect? You Need to Know!
We have just experienced one of the best years of investment performance, and that is both good and bad. It is good if you benefited from the performance, but it can be bad if you don’t face the reality of what 2020 and the future can bring.
How many times have you heard that past performance does not indicate future performance? I don’t want to throw cold water on your parade, but there are clouds on the horizon that we should pay attention to.
In our firm, we often consult with a financial analyst who communicates with multiple money managers each week to get their input on the investment environment. These firms manage hundreds of millions and have teams performing research for their portfolio decisions. While they cannot specifically predict the market, they do look at the global economy, governmental and political issues, and specific financial matters that impact their investment decisions.
The good news. The US economy is still performing well compared to most other major economic markets and we just had a great year.
The bad news. There is definitely a slowdown in the global economy and we are near the end of a decade in a bull market. If you are retired or near retirement, should you be prepared for market volatility? Absolutely.
Dealing with financial matters is like the rest of life in many regards. Do you always make the best decisions when you allow your feelings to determine your actions? If you do, then there is a very good chance that you are eating a lot of desserts and do not exercise. It feels good, but are the long-term results in our best interest?
If we could predict the future, we would only make perfect choices. We can’t, but we can make appropriate choices if we are realistic about our financial needs and the risks that we should or should not take. It is just plain smart to seek the wisdom of an advisor with years of experience whom you can trust with your best interest. Developing a plan that is appropriate to address your concerns and your needs just makes good sense.
Money is a tool. A good carpenter has the right tools and knows how to use them.
The ideal financial plan protects you from dwelling (stressing) about financial matters so that you are able to enjoy life with your family and friends. God gives us one life to live, and hopefully, we can take this time of the year to celebrate His gift to us!
Wishing you the best in 2020 and beyond!
