Okay, let’s huddle up.
Sometimes talking about the tough stuff is… well, tough. It’s much easier to focus on the positive. Usually, I do that, but I also wouldn’t be a good advisor if I didn’t alert you to what I call “The Rose-Colored Glasses Syndrome.”
You may be familiar with it. Here are 3 different ways this can affect your mindset when planning your financial future:
- You’re unrealistically optimistic
Optimism is great, but too much can cloud your judgment. Especially when it comes to creating a plan. Many underestimate the chance of bad things happening to them, such as major health care costs or losing a spouse. As a result, they fail to prepare. - You base decisions on current and highly publicized eventsPeople generally focus on top-of-mind events — whether that means a dangerous virus or a hot stock market. So they often base investment decisions on recent market performance, even though the recent past may not be a good indicator of the future.
- You want the quick win over future preparednessThe desire for immediate gratification can lead people to avoid sacrifices that could pay larger dividends in the future. For example, they may save less for retirement to hold on to more of their paychecks, even if it means forgoing free money offered by their employer from a 401(k) match.
At Money & Clarity, we can give you an objective viewpoint to help you choose wisely for your future. We provide solutions that can help financially protect you from life’s unpredictability. And we’ll also develop a sound retirement strategy consistent with market trends.
Give us a call at 513-563-PLAN (7526) or book online, and let’s discuss more ideas on how to cultivate the right financial mindset. And your future will be so bright that you’ll have to wear the right kind of glasses. Sunglasses!
(You can wear those sunglasses while reading tomorrow’s blog. Stay tuned!)
Regards,
Nikki Earley, CFP® & Dan Cuprill, CFP®
PS: To learn the steps you can take to protect and even capitalize on recent investment volatility in light of COVID-19, check out my webinar.