2020 is a year we’ll all remember though in many ways we want to forget it. A global pandemic, unprecedented political craziness, and Iowa State making it to the Big 12 football championship game are all rare events! On top of all these things, I, like many of you, tested positive for COVID-19 in early November. Thankfully, like the market, I recovered!
So, what could catching COVID-19 teach anyone about investing? Well, keep reading!
The first thing is this: No matter how careful you are, sometimes you just get the bad stuff. I was careful when it came to COVID, but it still found me! Most investors are careful when they choose a financial advisor and their investments. But, this won’t prevent you from experiencing bad outcomes. While care is a good thing when it comes to our health and our finances, don’t equate being careful with being immune to everything negative.
Second, it’s important to plan for the long term but live for today. None of us know how long we have on this earth. It’s prudent and good stewardship to save, pay off debts, and live within our means. A majority of us will live into our 80’s or 90’s. We also need to live for today and enjoy the moment. Accidents happen; humans get sick and sometimes when we break, it can’t be fixed. Find a balance that works for you.
Third, as investors and human beings, it’s usually not good to over-react. Be smart, be respectful, do your research, and make your decisions. When it comes to your health and money, it is DIFFICULT to not get emotional when times are tough! When I first caught COVID, there was an initial shock, some disbelief, and a bit of nervousness. Similarly, I had several very long-term clients call in March and want to bail out of the market. Fortunately, after we talked, they stayed invested and now most major indices are in positive territory.
Fourth, remember when you are hurting, relationships matter. When I tested positive, my family, close friends, and Foster Group teammates all reached out and made sure I was doing well. This is what investors also need when they are hurting; a trusted resource to stand beside them and guide them back to “health.” I feel this is one of the most important things we do with our clients as financial advisors. Looking backwards, it is easy to see what we should or shouldn’t have done. When you’re in the midst of uncertainty, those decisions are incredibly difficult. Even financial advisors get spooked sometimes with their own portfolios. We are not “naturally immune.” When I do get a stock market “virus,” I go talk to one of my Foster Group teammates!
Finally, I learned again, life is short and almost nothing is guaranteed. Always having good health is not. The stock market doesn’t always go up. But, aren’t the good times sweeter when we’ve been through the bad?
In closing, I don’t think I’ve ever been more excited to say this next statement: Here’s to a Happy New Year. Bring on 2021!