This month’s quote comes from Nick Murray, a financial adviser from the US who is the adviser to the advisers!! He’s been around the block more times than most people have had hot dinners!
One of his mantras is that so many people run into financial problems because they react to what is going on in the world and in financial markets, rather than sticking to their carefully constructed plan.
If you’re well set up then you know how much you should have invested and how much you should have in your cash deposits for your short term needs.
You’ll know how much risk you should be taking within your investments, based on your own emotional tolerance to the ups and downs of investing, how much risk you need to take to have a financial plan and also how much risk is sensible based on when you need the money.
World events shouldn’t have any impact on that at all. At any time in history there are bad things happening that might temporarily impact investment markets. But if you don’t need the more volatile portion of your investments in a good while then (at least from an investment point of view – we’re not saying you shouldn’t care about world events from a human perspective), you can shrug your shoulders. All downturns will be temporary.
Your financial success will depend on being able to ignore the ‘noise’ that the financial press love to write about. It’s simple but not easy.
Firstly, get yourself a clear financial plan and then stick to it through thick and thin. A good adviser can be invaluable in helping you do this.
If you have your own story about how you’ve either managed to do this successfully or maybe struggled from time to time, we’d love to hear from you.
