One of the things we do periodically with you is take stock. Having a periodic review helps us stay in touch with what is going on in your life. It’s also a good time to review your holdings, the economy and the markets as well. The items to discuss fall into these two basic categories.
- Planning – connecting your money to your life.
- Cash flow needs, saving, spending and lifestyle.
- Thinking on retirement.
- Plans for residence, if any, moving or major remodeling.
- Estate and trust considerations.
- Other objectives, special considerations, taxes.
- Investing – your portfolio and the markets.
- The role of volatility in long term investing.
- Risk tolerance discussion.
- Time horizon review.
- Our assessment of opportunities and risks.
Of course, we spend a lot of time working with you when a money question comes up. You can ask us anything, any time. If we don’t know the answer, we’ll do our best to find it.
Clients, if things are happening we should know about, please email us or call. Otherwise, we’ll be in touch by and by.
I have never been what they call “an early adopter.” Even at the dawn of the personal computing age, my strategy was to figure out where the leading edge of technology was, and take two steps back. So it may not surprise you to know I am fairly new to the world of smart phone navigation.
The way those systems work reminds me of the way we approach life here at 228 Main:
1. Start where you are.
2. Proceed by way of your plans.
3. Arrive at your dreams.
When the phone maps a route for you, it never says “Gosh! There are a lot of problems where you are. It’s too far to go! Maybe you should wait for a better day to go.” It simply takes your location and starts to make plans.
Once underway, if you get off course, the phone figures out whether it is better to go back the way you came, or take a new route to the same goal. One way or the other, it wants you back on track. It won’t let you go mile after mile the wrong direction.
If you don’t know where you are going, any road will do. So one of the basic requirements is knowing your destination.
When we think about our work for you, there are many similarities. We begin by understanding where you are, your starting point. We invest time in learning your goals (or dreams), helping you clarify them if necessary. Where you are, where you want to go: it is about the same as using your phone to navigate.
Then we do the work. Sort out the best path to get you to your dreams. Check in and monitor it to make sure you are still on course. Provide midcourse corrections if needed. And communicate continuously with you.
Clients, if you would like to talk about this or anything else, please email us or call.
Scott Adams, creator of the wildly successful comic strip Dilbert, is a man of big ideas. Some of them are fantastic, some of them are questionable, a few of them may be literally insane. However, for all his eccentricity it’s hard to argue with results: over the past three decades Adams has managed to parlay his workplace doodles into a multi-million dollar franchise.
Among his many ideas, there’s one in particular that he credits his success to: he doesn’t believe in setting goals for himself. Instead, he believes in building systems to work towards what he wants. The idea is simple. Most peoples’ goals depend on factors outside their direct control, which leads to frustration. By focusing on what you’re doing to manage those goals, though, you can build a system or framework for trying to achieve what you want. This way, you’re only concerned about the things that you control yourself, rather than worrying about goals that are outside your immediate reach.
For example, suppose a freshly minted high school graduate wants to be a doctor. That goal will take an enormous amount of dedication and training, and no amount of passion or talent is going to replace that. At any given moment, they’re an entire decade away from reaching their goal—it will take them five years of school before they even reach a point with any kind of real hands-on training. When faced with such a distant goal it’s easy to despair of ever reaching it. But while they can’t just up and be a doctor, they can always work on their system for trying to become a doctor. By focusing on their immediate day to day studies instead of their long-term goal, every day is a success. They simply use their system.
We think this makes great life advice in general, but it’s particularly important when it comes to investing. Our goal is to grow our portfolio over time, but what the market does day to day is entirely beyond our control: we can’t force our portfolio to go up. What we can always do, though, is work our system. In our case, this means practicing our three core principles: avoid stampedes in the market, look for the biggest bargains we can find, and own the orchard for the fruit crop. We can’t push a button and make your portfolio grow. But we can practice our investing discipline every day, even when the markets don’t cooperate.