“Worrying won’t stop the bad stuff from happening, it just stops you from enjoying the good.” -unknown
The number one mistake I see people make in their investing, is allowing their emotions affect their decisions. This week’s letter is dedicated to putting you at ease, so you can think more clearly, make better decisions, and hopefully enjoy life more. I will also include some financial information to think about, as well.
The Uncertainty - How many times in your life have you been stressed, worried, or been told your world is hinging on the next moment? Perhaps many times, and yet, here you are; likely reading this letter on a device that was unheard of 20 years ago. This time will pass. It is up to you, on how you feel along the way.
The Unknown - “You don’t have to know what comes next. You don’t have to have everything figured out right this second. You don’t need to know your entire story. You are a living, changing, growing soul, riding though your unique and beautiful journey of life. And that is exactly what it is -a journey- and it wouldn’t be a journey if you knew everything that was coming next.” - From Walk the Earth. You will NEVER know everything. So what to do??
To Observe - No matter which party is president, there is a mountain of stimulus, being injected into the economy. Think of this as firewood, fuel to keep the economy going, while we are dealing with COVID-19. Interest rates are LOW. The lower rates are, the more we can pay for things, because borrowing money is cheaper. In other words, the lower rates are, the more appealing dividend rates on stocks seem to be. S&P 500 dividend yield in September is 1.75%. When a retiree or business owner is getting almost zero on cash and just a little more on bonds, stocks may make more sense.
To Prepare - We plan. This does not mean that we can predict with certainty EVERYTHING, that can happen. Think about it like this; when you pack for a 3 day trip, what do you pack? How many suitcases do you take? Depends on the weather, where I am going, if I am flying or not, etc. What you don’t do is get an entire semi truck to move your whole house. You pack what is REASONABLE, based on what you EXPECT, to do. Planning for retirement is not that much different. We plan for a variety of scenarios, higher or lower taxes, up and downs of markets, up and downs of interest rates, law changes, etc. The trick is to have flexibility to adjust, as needed.
To Live - This is the most important part. To live. Isn’t really the point anyway? To enjoy the journey? Do what you can, and LIVE. Spend time with loved ones. Spend time with unloved ones. Do what you can, and let the rest go. Be flexible. Be understanding. Just be…😊
Jeremy Finger, CFP®, CIMA®, CRPC®, CPFA
Founder & CEO
Wealth Management Advisor
P.S. On the lighter side, I have lost over 20 pounds in the past two months. Just eating right. Pretty good! So this is quite literally, the lighter side!
Investment advice offered through Stratos Wealth Advisors, LLC, a registered investment advisor; DBA Riverbend Wealth Management.
This content is developed from sources believed to be providing accurate information and provided by Riverbend Wealth Management. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Stratos Wealth Partners and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.