Do You Know Where Your Money Is?

In casual conversation, someone told me that they were great with their investments because they had someone they trust at a big firm taking care of all that. I said terrific, how is it invested?  The look they gave me was the look most people do, confusion, misunderstanding and discomfort.  If I already knew what big company it was at, doesn’t that mean I know where and how it is invested? 

If someone I loved was in Mercy Hospital, that would tell you one thing. But if you wanted to know more because you were close to your loved one, you would ask who the doctor is and what they were doing to them and what the diagnosis was.  Yet, an established financial firm seems to be the cover for many financial questions. 

There is so much more.  You want to keep your money close to you and understand where it is invested or saved. You are the only one responsible, no matter who is managing the money for you. You have given them the power to manage it, but still your job is to be sure they are doing what you want. You want to communicate your needs and goals. Then, be sure they educate you and communicate with on how they are working towards your wants: where the money is invested, how risky it is and how much they are charging you to make all this happen.

Then, you will truly know and can state that your investments are doing well. The details demonstrate the truth of your money, the investment company name does not speak to your individual situation.

Don’t be Complacent! Act Today

Signs Your Thinking & Acting Complacent:

        My vote does not count.

        The stock market always goes up.

         Nothing I can do helps improve the world.

Those are the comments of the complacent.  So now we hear so much about voting.  Get out to vote – And your vote matters.  You have heard all about voting by now.  But have you been complacent in other areas? 

Think specifically about your engagement in your finances.  Taking care of your money and knowing what you have is a key ingredient to financial success.  On the investment side,  believing they always increase is an uninformed statement. By nature, the stock market goes up and down. Position your investments for the long-run, rather than following the latest trends is an important strategy.  You may not have control over the market, but you do over your finances. 

Every day we have opportunities to make a difference in someone’s life.  You do not have to do anything major to improve someone’s life, nor does it have to cost money.  This may be with a phone call, a smile or a kind word.  These things can make a difference for a moment or a day.  Never underestimate your power.

Engagement in our world matters.  Complacency is the problem.  Whether it is your vote, your finances or your community.  You can make a difference. Improve your world intentionally today.

Does Your Mood Match the Market Swings?

This Week’s Ups and Downs but mostly Downs, have many people struck in terror. First of all, as of this writing, the stock market is down 2% for today. Yes, you may say but what about the week? While let’s look at the long-term picture for a better perspective. Since this time last year, the market is up. Not a lot but higher than it was on December 6th in 2017 as far as the Dow Jones and S&P are concerned.

Second, the real question is….How are your investments doing? Technology for example is up. If you have some equity diversity and bonds in your portfolio, the decline of the past few days may be balancing your portfolio to the point where the losses are not so dramatic. Look closer at what you before you panic.

Third, do you have cash? Not just in your pocket but in the bank. Perhaps as part of your asset portfolio where you can access it if you needed. Remembering that cash is one of the three main forms of investment is essential to managing your money. Despite its poor return record of the past ten years, the reason cash is always in style is for its dependability. The currency is always there and insured if parked in an FDIC insured account.

Finally, if you are truly affected in your daily life by the market swings, this is a time for a two pronged improvement to your life. One, take the time to create an investment strategy that matches your age, needs, and personality. Talk to a professional investment person who can educate you and create this for you, before making any changes. Two, do some important work on yourself by finding ways to decompress more in your life. Your health is worth it.

Meantime, know what you can control and cannot. You cannot change the market. You can change your investments. Most of all, you can lower your stress level with some good information.

The Stock Market Continues to Roller Coaster, As It Should. You Do Not Need To...

Thinking, Worrying & Stressing about the stock market? This is the time to fall back to your investment strategy. Don’t have one? Remember have a MoneyPeace safety account and a balance of stocks and bonds for your long term retirement monies. Need money for a home, college or car in the next three years? That money needs to be only invested in an insured cash place.

Quote of the Week

"How do we know when irrational exuberance has unduly escalated [stock market] values, which then become subject to unexpected and prolonged contractions as they have in Japan over the last decade?" ~ Alan Greenspan, contemporary U.S. Federal Reserve chairman, December, 1996.

What If?!??!

With many folks thinking about the stock market ups and downs this past month, I began to wonder...

What If you knew the stock market was going to plunge tomorrow, what would you do?

Many people would want to react and take their investment money out of the stock market. They would feel better if they had money in the bank rather than watch the media report the drop in investment value across the board.  They would want to know their money was safe.

What if you knew the stock market was going to go up tomorrow? Now what would you do?

Many people would want to add more money. They would figure they could make money. Taking on more risk would be okay because after all the returns would be worth it.

The truth of the matter is, no one truly knows when the market will go up or down. If anyone tells you they know, be very surprised and very cautious. The market goes up and down on a regular basis. Yet, when it goes up for years, people get complacent, as we have since the 2008 declines. We have a new round of declines that may last a long time. Or they may not.

What is one to do? The answer is a middle of the road strategy. See the answers above to what you would do if the market was going up: Have some cash in the bank so that no matter what happens, you feel your financial life is safe. 

For those times when the market is going up and you want to be buying investments, continually invest. Contribute monthly to your 401k, IRA or other retirement vehicle. A little bit on a regular basis makes a big difference in the long term. 

There is no get rich quick scheme and no crystal ball. We all have to ride the wave of ups and downs. In the meantime, we can make balanced choices to control what we can. No matter "what if" scenario plays out, you will not be reacting.  

Act in a balanced long-term way and think long-term.

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