Holiday conversations…

As we approach the holiday season, you’ll hopefully find some time to spend with family and/or friends. Many conversations will be had and some may be about that overdone turkey and some may even be about the investment markets.

If the investment market topic is raised, I’d hazard to guess bitcoin will be mentioned. Over the last several weeks, I’ve had many conversations with clients about bitcoin. Not surprising given the world’s first example of a decentralized, encrypted and distributed currency has had a massive surge this year. If not bitcoin, you may hear the phrase “FANG”. Again, not surprising given Facebook, Amazon, Netflix and Google have accounted for a big portion of stock market returns in the US this year.

This reminds me of a question my mentor (Ken Hawley) would raise at times like this in the past. Are you an investor or a speculator?

Investment decisions should be based on your long-term goals and the strategy in your individual financial plan - not what the media is talking about this week.

Before making any investment decisions, ask yourself two things.

• First, does this match with my financial plan? and
• Second, does this investment make sense for me?

Investors use a long-term consistent strategy to create a secure retirement through purchases of well-diversified investments. Speculators change their investment philosophies based on emotions, occasionally treating their investments like bets, rather than important building blocks of their financial future.

To make the most of your investment opportunities, allow your Financial Plan to dictate your investment decisions. Your financial goals are what matter, so keep them firmly in mind when you make any investment decisions.

Why do we plan?

Knowing where you are translates into knowing where you're going, and we hope to provide every client with the trust and confidence to navigate through the waters of their financial lives.

Learn More