What you focus on expands for your money and financial plan
Question: Are there some things that you could do in order to make your investments perform worse?
Of course there are.
Next Question: Are there some things that you could do in order to help your investments to do potentially better?
Yes, there are.
So you do have a lot of control when it comes to your investments such as:
1. Where your money is invested
2. The number of different accounts (or buckets of money) you have
3. If you have a financial plan or not
4. Whether you have regular reviews of your plan (and changes if needed)
5. How many different sources of potential income that you have
The list can go on and on.
Here is the point of these questions and the list…
What you focus on expands.
Let’s really think about this.
People that focus on their own health and wellness, and who take specific steps tend to be healthier. A person who exercises on a regular basis, eats healthier (more vegetables and fruits), and drinks more water will have a better chance of being healthier compared to the person who does not exercise, eats fast food and drinks mainly soda pop and/or alcohol. The person who is healthier has a “focus” and is taking specific actions that produce a result. While there are no guarantees about their results, it certainly can give them a better opportunity of having the desired outcome that they are seeking. This person who is healthier might subscribe to some wellness publication and shop at a grocery store that has a lot of healthy options. These things do not happen by accident. They are “focusing” on it.
Let’s turn to the area of finances. Unfortunately there are people who choose to not focus on their finances. Yes, it is a choice. Oh, they may read some random articles on the internet about investing, or listen to somebody on the radio that is sharing some general financial information. But a lot of this information does not help them to improve their situation. Many times their focus is scattered.
Other people turn a blind eye to this area and do not do anything about it. They have the “buy and hope” strategy with their investments. Their plan is to keep holding the same investments that they have had for years, for better or worse. Perhaps it’s investments they inherited. Or it could be investments in a 401k from an old job. Or is could be investments from a person who calls themself a financial advisor has set up in which most of your money is at risk of potential losses in the stock market. This person might really be a commission broker or stock broker because they only deal with stocks and mutual funds. There were a number of retirees that found out about the potential dangers of this back in 2001 and 2008 when they lost a substantial part of their portfolio when the stock market crashed. Some had to go back to work. Others had to sell their homes. Very sad. Yes, there can be a very big difference in financial advisors. Not all advisors are equal, and neither are the results they produce.
So how can you really “focus” on your money and investments to help you accomplish your important retirement goals? It can start with educating yourself about a number of different topics such as investments, ways to reduce risk in your portfolio, the impact of longevity and inflation, long term care and more. The list can be a bit overwhelming. This is where working with a financial professional can be the difference between success and failure regarding your financial future.
If you do not take proactive steps to improve your financial situation, then it most likely will not improve. Sure, the stock market has been on a record run upward over the course of recent time. But as history has proven, things can change in a short period of time.
Where will the stock market be at in 2 years? In 5 years? In 10 years?
How is your portfolio prepared for the next major stock market downturn?
Do you have a written plan in place to be prepared for the next major stock market move?
How many different investment sources outside of the stock market do you have in place?
Proper planning and asset protection can come down to planning in advance. Since we live in this global economy, things that happen in China, Europe, Asia and around the world can have a big impact in a brief period of time. Just think, the next major event that happens will be blasted all over the internet and telecast on cable television all over the world in a matter of a few minutes. Even minor so-called news stories are telecast all over the place, and some become bigger news events as the days and weeks roll on.
We already agreed that there are specific things that you can do in order to help make your investment results worse, or potentially better.
So the question is… What specific things are you going to do in the near future (like in the next 7-10 days) in order to help put yourself on a better path financially?
What are you going to “focus” on in order to make the desired improvements?
If you continue to do what you have always done, then it’s likely that you will continue to get the same results.
Let’s make sure that “your focus” is in the best place for your retirement goals and financial situation. You can contact Riedmiller Wealth Management at 402-904-7575. Let’s chat about your financial situation. We will be happy to answer your questions, and see if we can point you in the right direction.