The Journey of Investing

HAPPY HOLIDAYS and HAPPY NEW YEAR!

WOW! What a year it’s been. What did we learn in 2020?

Life is about people.  Life is about money. Life is about good health.  Life is about all the above and more.

While money is ever-present in our lives, ultimately money is really just fuel. A living body needs air as the fuel of its existence and survival.  Similarly, the fuel that runs through every Estate is money.  With it or without it…the differences are magnified.  However, the purpose of money is not to build a big pile of it – it’s where the money can take you.

As we begin a New Year let’s ask, do you have a vision for 2021? Do you know where you’re going? With a fresh start ahead, it’s a good time to take stock and get some clarity. Our infographic below will help get you started. Get ready to start planning.

Here’s to reaching your desired destination on a smooth road, in good health and a full tank!

Where Are You Going?

You’ve reached your financial destination. What will you be able to do? Quit your job? Travel? Leave an inheritance? The purpose of investing isn’t just to shield you from future danger, it’s about creating and actualizing your vision beyond the dollars.

1.  Set Your DESTINATION

What happens when you get in your car to go somewhere?  The answer is nothing happens, unless you first know where you are driving to. The car doesn’t know the destination of the trip and your pile of money doesn’t know what it will be used for.  So set your vision for the money.

2. Set a TIME PERIOD

It takes 6 hours to drive from San Francisco to Los Angeles.  How long will it take for your investments to reach the desired destination?  Everyone wants to have millions of dollars, and they want it all tomorrow.  Right…get in line.  The amazing part is that if you set a 10 year time frame on average, and combine that with an agressive but reasonable Vision…surprise surprise!

3. Decide on the RISK LEVEL

The risks of driving to Los Angeles from San Francisco in the summer are different than in the winter.  In the winter there could be snow in the mountain area know as the Tejon Pass (the Grapevine).  For investments risk levels change over time.  Monitoring and adjusting risk levels is part and parcel of ensuring you safely reach your destination.

The notion that stocks are riskier than bonds is foolish.  If stocks are rising and bonds are not, then the risk actually lies in bonds and not in stocks.  Risk levels change and so your investment portfolio also needs to change.  If you are too conservative in a rising market you lower your chance of reaching your destination.  Similarly if you are too agressive in a downward market.

4. Set Up Monthly SAVINGS

Most of us would agree that money is a lot like water as we see it in our possession one day only to see it disappear the next.  Paying bills, buying stuff, fixing things, supporting others.  Discipline requires that for every dollar that hits your palms you MUST take at least 10% and add it to your investment vision nest egg.

Do this for 10 years, or 20, or more and once again be ready for Surprise, Surprise.  Visions do become reality if you wish it so, and make it so.

5. SEE Your Destination!

We all say the same thing when we reach a new milestone in our age.  When I turned age 40 I went ballistic.  My wife loves birthdays and celebrates them while I cringe as I did when I turned 40.  Then I turned 50.  And then 60.  Each time I asked myself “where did the time go?”  The vision in the rear view mirror is a lot different than when viewing it through the windshield.

Do you see your vision?  It’s right there in front of you.  Move towards it with confidence, dilligence, and clarity.  There is another vision waiting for you after this one.