They say that marriage is hard work.
Well, so is investing – and for many of the same reasons!
Staying “married” to your long-term financial goals can be difficult in the face of market volatility.
But staying in it for the long haul is worth it.
So how can you ensure you’re weathering the storm and reaching those goals?
You need expert guidance.
Relationships need therapists. Investments need financial planners.
Even when things are going well, seeking guidance from a real professional is essential. When you’re emotionally close to something, making smart decisions can be tough.
When the market drops (and it will!), your anxiety might skyrocket, and you’ll be more prone to making potentially disastrous knee-jerk decisions.
Bringing in an expert will reassure you that things are on track. And if there is a crisis? You already have a game plan and know exactly who to call!
You can’t listen to everyone with an opinion.
Your friends who spend every second with their partners may not understand how you could consider vacationing separately (or vice versa!) But that doesn’t mean you should listen to them and cancel your solo weekend getaway! What’s right for them may not be right for you.
The same goes for your investments. Market noise can persuade you to make decisions that negatively impact your long-term goals. Tune it out! Not every stockbroker with a blog, money guru, or financial reporter knows your unique goals and plans. Trust your expert (see above!) and stay focused on the long term.
Focus on what matters most.
Life is unpredictable. Crazy things can happen to anyone! But when your relationship has a solid and secure foundation, you feel emotionally safe no matter what your circumstances are.
The same is true of investments! Focus on what matters most: a diversified portfolio with quality investments. With that foundation, you will ultimately achieve your goals despite market volatility.
Set your boundaries.
For some married people, the idea of their partner flirting with someone else would be hurtful. For others, it wouldn’t even register on their radar. There is no hard and fast rule – it all comes down to your personal comfort level. Discussing your boundaries up front is part of successfully navigating a long-term relationship.
Discussing your boundaries around risk is part of successfully achieving your long-term financial goals. For some, the risk of losing big is worth the potential to gain big. For others, that risk would be far too difficult to process. There is no “right” way. Your expert will build your portfolio around the boundaries you set together around risk.
There will be good days and bad days.
You wouldn’t end your relationship because of one bad day, would you?
What about a week of bad days? Probably not.
Because, overall, you are happy.
Investments are similar. By checking in on your investments daily, you unintentionally narrow your focus to the short term. It makes it even harder not to act on those daily changes.
But investing, like marriage, is a long game. Trust that your expert is doing those daily check-ins and that they will alert you to anything major that requires attention. Focus on your yearly review, and you’ll see a general trend toward accomplishing your goal.
There is no such thing as a perfect marriage OR portfolio. But by working with a Certified Financial Planner®, tuning out the noise, and staying focused, you can achieve your financial goals even in the face of market volatility.
I'm no marriage counsellor, but I can set you up for financial success. Book a call.