Attempting to buy individual stocks or make tactical asset allocation changes at exactly the “right” time presents investors with substantial challenges.
The primary reason for portfolio rebalancing is to maintain the risk profile of the policy portfolio that the client has chosen. However, periodic rebalancing has the added benefit of ?buying low? and ?selling high?.
Financial planning can be a lot like that. The parallels to personal finance may not be point for point, but as the seasons change, so may assets on a personal financial statement.
While the News headlines the impasse with split government in Washington, the trade war, immigration, and the growing field of contenders for the White House, a substantial change in retirement plans is making its way through Congress.
We all will go through life seasons, and, with that, our ability to invest and what that ‘investment’ looks like will be different. No matter what season you’re in, don’t let it stop you from investing in something you care about.
Are you making the most of the rewards for your hard work? Your organization benefits from your time, effort, and management skills, but does your family get the most from all that effort?
The first step to managing emotions in financial decisions is to understand the script or story you are telling yourself about money and where it came from.