Hope, optimism, belief, notion… In our line of work, it doesn’t matter how you say it. We’re banking on the idea that, overall, we’ll see more up than down.
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long term investing
We Need What We Need, But We Want What We Want
We’re big fans of making the most of things. But it takes a little perspective to learn how to prioritize our goals. What are our very next needs? What are the wishes that can wait?
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When the Price Is Right
Who doesn’t love a bargain? A savvy searcher knows that there’s more than one type of opportunity. What does this mean for our portfolios? More in this week’s video.
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Let’s Talk It Out!
Converse, communicate, babble, blather, rant, rave… I love to talk! Preaching to the choir, but it’s worth reminding everyone: I’m here to do this. By choice. More in this aptly-titled video.
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It’s All Beginnings, Endings, and Transitions
In Roman mythology, the god Janus had one face looking forward and another looking back. It’s natural in this season to look back, take stock of where we’ve been, and think about the best way forward. That’s what we’re doing at 228 Main.
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Selling Out Is a One-Way Ticket
As we know, the markets go up and down. It’s just part of the deal! But sometimes the peaks and drops can get a little intense, so it’s worth revisiting this reality once in a while.
The most mindful long-term investors are usually less alarmed by the bumps along the way. They know what they’ve got is basically a lifetime pass on a rollercoaster. But it’s the ride to greater potential returns, so they can keep the thrills in perspective.
What would the alternative be, in our rollercoaster example? If you get spooked on a big drop, there’s no abandoning your seat. “Please keep your hands, arms, feet, and legs inside the vehicle while on this ride,” the announcement cautions.
It’s best to stay in your seat, your best chance to get to the end of the ride in one piece.
As long-term investors, we know that we can afford to let each cycle just run its course. Jumping off the ride partway through sets us up for more trouble and more work than it would ever be worth: how would we know when it’s best to jump back on? How do we know that we’ll be able to jump safely?
We hope this is context enough to allow us to be blunt with you: long-term investing is a ticket for the whole ride, whatever that may mean.
Selling out? Selling out is a one-way ticket out of our shop.
Your resources are your business. Where you park your wealth is your decision, completely, and each one of us needs to do what is best for them.
But we choose to keep at it for those who are thinking about the long haul. We believe it’s the most effective approach to a lifetime of financial wellbeing—and whatever legacy might stretch beyond your lifetime!
Clients, we strive to communicate our values and intentions clearly. Do you need to clarify anything with us? Call or write, anytime.
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Play the audio version of this post below:
Selling Out Is a One-Way Ticket – 228Main.com Presents: The Best of Leibman Financial Services
This text is available at https://www.228Main.com/.
The Longevity Discount of Investing
Stability is no bargain. A lump sum invested for 25 or 30 years in a less wiggly portfolio might only grow to half as much as a more effective portfolio that embraces that longer time horizon. The longer we can tolerate volatility, the better off we may be.
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It Goes Up and Down: Some Questions for a Moment Like This
The history of the stock market can be summed up pretty well: it goes up and down. As for the future, we cannot know for certain whether it will continue to go up and down—or on what schedule—but it seems reasonable to take the liberty of guessing this whole “up and down” thing may persist.
When things are down 20% from their most recent peak, and we recognize it goes up and down, this may well be as good a time as any to invest.
We might have a recession, but current lower prices already reflect a lower outlook. You could say sentiment is already in the mix, already baked into prices. And anyway, where there’s a recession, there’s surely a recovery to follow.
Do we know the timing? Nope. But we never do. (That’s where the whole up-down thing comes back into focus.)
There is much we do not know, but we have faith that perhaps our guesses may be good enough to get by. We believe, for example, that in the future there is money to be made by companies that meet our needs. We have a hunch we will continue to eat, shop, entertain ourselves, wear clothes, go places, communicate, create, and do all those other things humans tend to do. And we have an opportunity now to invest in companies that could provide those things then.
Clients, some things to consider at such a moment as this:
- Is there room to start or add to a Roth or IRA?
- Should some funds in a stable-but-stagnant form perhaps be invested for long-term growth?
- Would a Roth conversion make sense given these lower prices?
It goes up and down. And when we invest for the long run, we commit to the ups and the downs both. One never knows when the trend will change, just that it very well may.
If it’s time for you to add to long-term holdings, please email us or call the shop—anytime.
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Play the audio version of this post below:
It Goes Up and Down: Some Questions for a Moment Like This – 228Main.com Presents: The Best of Leibman Financial Services
This text is available at https://www.228Main.com/.
Raphael, Donatello, da Vinci… Markelangelo?
When you mow a lawn, or paint a wall, or run a race, every bit of effort moves you closer to the end. There is only progress. You see tangible, visible results: grass clippings pile up, or the paint covers more of the wall, or the finish line gets closer.
Long-term investing is different. On nearly half of all days, the broad market averages go backward. This has also happened over whole years, about one out of four historically.
When we paint a wall, there are no forces moving with us and wiping away one stroke of paint for every four we make!
So in this respect, investing is more like creative work. An artist who paints might have to add layers over their earlier work to create the effect they want. They might even use a palette knife to—yep—remove paint and clear a space for something different.
Maybe investing and creating both require a long view, guided by a vision of what might be. Both pursuits require the patience to work at it even when results come only in fits and starts. No guarantees in either arena, but we don’t know which ideas will pan out without the pursuit.
I’m no artist, but that sure is what investing feels like.
A lap with the mower provides its own immediate feedback. When we make an investment, the early results could be positive or negative, and it may feel like a coin toss. Only as the months and years roll by do we see the fruits of our work. Some backward movement, sure, but we expect to see progress across the process.
We cannot do this work for just anyone. It takes people who have perspective, the ability to take that long view, to have faith that we are on the right track even when temporary setbacks engulf us.
Fortunately, here at 228 Main we have the best clients in the world. We are grateful for you.
If you would like to talk about progress toward your goals (or anything else), please email us or call.
All investing includes risk including loss of principal.
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Play the audio version of this article below:
Raphael, Donatello, da Vinci… Markelangelo? – 228Main.com Presents: The Best of Leibman Financial Services
This text is available at https://228main.com/.
Next Needs and Wishes that Wait
We can do it all… but not all at once. How you might prioritize all the most important financial goals on the path ahead. What are the next needs versus the wishes that can wait?
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