A lot of people today are feeling nervous. They’re anxious about their financial futures.
You can tell from the questions they ask:
- How I am supposed to plan financially when the economy is SO uncertain?
- How are these tariffs good for anybody? All I see is rising prices and a sinking portfolio!
- Is my Social Security safe?
- Is our national debt a ticking time bomb?
Questions like these are understandable. There IS major upheaval in our economy.
But this doesn’t mean we have to roll over and act like victims. And it surely doesn’t mean we can’t plan.
I think we need a reminder of what planning is and does (and what it isn’t and can’t do).
Too many seem to think that good financial planning equals accurate financial predicting.
The idea goes something like this: “Somewhere out there is a financial planner with such a broad and vast knowledge of global economics, the history of the markets, investing principles, current events, etc. that he or she can pretty much see the financial future. If I could just find that person, I’d know exactly what the markets are going to do and when to buy and sell stocks.”
For the record, any advisor who lets you believe he can do all that is a scammer. Run the other way.
Think of it: if seeing the future were a prerequisite for taking action, our country never would have declared its independence, no business would ever be started, and no athlete would ever devote years of their life for a chance at a pro career.
Making financial predictions might be the favorite pastime of the talking heads on TV. It’s a waste of your and my time.
Instead of fixating on predicting your financial future, better to focus on positioning yourself to best handle whatever future comes your way.
Here are three ways to do that—three actions that will serve you well no matter what the future holds:
- Protect yourself and your stuff. Unforeseen disaster can strike at any time. Make sure you and a licensed professional assess all your major areas of exposure and buy insurance to cover yourself. You’ll be glad you did.
- Under spend and over save. Nothing contributes to economic health and financial peace life than spending less than you make and doing that long-term. If you are not saving 15% of your income, promise yourself that you’ll work with someone to make that a top priority. In most cases I’ve seen, you can get there in five years or less.
- Upgrade your work skills. Nothing is so certain in the workplace today as change. What are you doing to make sure you are valuable to your current employer (or your future one)? Your boss’s assessment of your value is directly reflected in your paycheck (or should be). Make sure you are giving your employer plenty of reasons to make your compensation larger.
In short, it’s fine to wonder what our financial future holds. It’s not okay to insist on knowing that future before we act.
Good financial planning has nothing to do with predicting the future. It’s about positioning ourselves to best handle whatever the future brings.
Speaking of financial futures.
If you’re wondering about retirement, I’ve got a helpful, free tool. It’s called the RISA (i.e., Retirement Income Strategy Assessment).
In less than 10 minutes, it can show you what kind of retirement income plan best aligns with your personality, resources, goals, and lifestyle. There’s no obligation, and you can access it by emailing me (bmoore@argentadvisors.com).
Afterwards, if you want to discuss your RISA results further, reach out.
Argent Advisors, Inc. is an SEC-registered investment adviser. A copy of our current written disclosure statement discussing our advisory services and fees is available upon request. Please See Important Disclosure Information here.
