We have no idea what your future in retirement will hold or what the economy will look like but the core principles and saving, investing, and prudent preparedness will remain the same.
Attention is a scarce resource and competition is often fierce in investing space. The idea that investing is not meant to be exciting, and you should get “rich” slowly does not create mass appeal. This leads to trendy products being pedaled to the uneducated consumer audience. These products tend to be more expensive and less effective than a less flashy alternative.
By using either dietary or investing guidelines you can customize the framework to meet you where you are and develop patterns that will drive positive long-term results. Consistent good decisions, however small they may seem, can make a huge difference when compounded over a lifetime. Make every bite count, make every dollar count.
You can make creating a financial plan an event, something that you do once, where you place the resulting binder on a shelf to remind you of its completion. Or you could make financial planning a practice where you regularly review your plan and make informed decisions and adjustments as life plays out.
In training and investing, we are dealing with limited resources and have to find balance and make compromises as a means of achieving our set objective.
For many, investing can be seen as a “painful” experience, because you often expose a portion of your portfolio that experiences market volatility. When investing you must determine if the pain you are experiencing is indicating harm (damage) or is to be tolerated.
Everyone has to start somewhere, and there should not be any judgment placed on that person for not knowing “better.” They are likely doing the best they could with the resources they were given.
Risk presents itself in many forms and changes with time horizons. Balancing the type of risks you face is an art rather than a science.
If 2020 taught us anything, it’s that we humans are adaptive creatures and can adjust to things that before never thought could happen.
Uncertainty of the future will always be present and optimism may become scarce. Prepare for these times, but have faith that a better future will prevail.