Tuesday, November 25, 2008

Reality Check - How Are You Doing?

Stop monkeying around
investing strategy portfolio market

Till last year - when I asked coworkers or friends about their investment strategy the answer usually was part ignorance and part reliance on someone else. And since we were still in a bull market - people were seeing reasonable gains in all asset classes and did not care much about the finer workings of their investment strategy. In those days the work of the financial advisor was easy.

Alas - those days are gone and with a 50% decline in the market people are much more cognizant of their investment returns. They are seeing some red (maybe a lot of red) and are freaking out. A lot of folks want to stop investing (contributing to their 401(k)) or cash out their accounts. There is confusion and lack of confidence.

The good part (there is always one) is realizing how oblivious you are of your own money. The sooner you face the fact that no one cares more about your money than you do - the better off you will be. If this bear market was a wakeup call - good for you. The sooner you start to understand your financial situation, investment strategy and long-term plans - the sooner you will embark on the road to financial maturity.

And believe me - there is profound confidence and peace in being in-charge of your own financial destiny.

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