the right way to invest blog
The main theme for Q1 has been market volatility and what we can do to counteract its impact on us. The final page of the Q1, 2018 quarterly report makes a good analogy about how embarking on your financial plan is like sailing around the world. Your voyage won’t always go as planned, and you’re sure to come across rough seas at times (in the form of market volatility and personal ups and downs), but the odds of reaching your destination increase greatly if you are prepared, flexible, patient, and well-advised. We like to say: “if you fail to plan, you plan to fail.”
What is “noise?”
It’s the constant stream of good, bad, and indifferent thoughts and ideas from every stock market talking head and pundit. Combined it becomes an endless supply of noise – like white noise when the cable went out (for those of you in your 20s you might not know what I’m referring to).
Our job is to filter out that noise. We’re here to take the worry out of investing. Whether markets are making new highs, crashing back down, or resembling a roller coaster ride of ups and downs like we’ve seen over the last month plus, the key is to focus on your personal financial goals. Don’t let the noise derail you; don’t let the noise derail your personal financial goals. The noise doesn’t know you and it doesn’t know your financial situation, either.
Please enjoy this excellent video from Dimensional Fund Advisors about tuning out the noise...
Michael Pensinger, CFP® is Owner and President of Pensinger Financial, Inc.
He grew up in Park Forest, Illinois and now resides in Lemont, Illinois with his wife, two children, and two dogs. Michael serves as Treasurer on the Lemont Area Chamber of Commerce Board of Directors and he volunteers for the Lemont Open Space Committee. Read More