2020 has reminded us of just how much is out of our control. Who would have predicted the events that have already happened this year?
Most of us spend a lot of our time worrying about actions and events that are out of our control. Fear of the unknown and the fact that we can’t change so many things in our lives leads to all this worry. Here, as if you need it, is a short list of the really big things we can’t control: health crises, stock market volatility, tax policy, economic cycles, politics, interest rates, and death.
At Foster Group, we focus on what we can control and embrace uncertainty (See Foster Group’s Chief Investment Officer, Kent Kramer’s, previous article, Embrace Uncertainty!). So, when it comes to your financial plan, what are the areas we can help you control?
- One is creating a financial plan. The plan will change along the way, but creating a pathway may help you make better decisions down the road. The financial plan we help you design takes into account the uncertainty of the future.
- Another is investments (see Kent Kramer’s previous article, Diversification – Preparing for the Next Surprise). Focusing on your asset diversification may increase the probability of long-term success.
- One more is asset allocation and your focus on long-term goals and objectives. There can be varying degrees of market volatility in the short-term. However, time is our friend; it allows us to plan for various outcomes along the way and help us be ready when they occur. Planning may help you maintain your asset allocation when the going gets tough.
- Some additional areas include: keeping trading costs low, knowing how much to save to meet your goals, developing a comprehensive and up-to-date financial snapshot, rebalancing your portfolio, and helping you navigate your interest in generosity.
The challenge is to shed the worry about items you cannot control and focus on the pieces of your life you can influence today.
At Foster Group, truly caring for our clients means taking the time to learn what’s in their hearts and using proven methods to help them pursue their goals. If you have questions about Foster Group or would like to start a conversation with us, please reach out. We’d be glad to connect with you.