Personal wealth management is not rocket science. However, it does require those of us who are professionals to use the same focus. A rocket scientist sets the goal of reaching a destination and all of her efforts are aligned to make it happen. She doesn’t do it in a day, but overtime completes the mission. When the unexpected occurs she doesn’t scrap the goal, she adjusts.
As a Certified Financial Planner it is my job to help you refine your goals. The market has created the opportunity for growth similar to the way a fire clears the forest for new growth. If you continue investing for the long term you can’t lose sight of that goal. Through the use of specific financial tools we can increase the efficiency of achieving those goals.
One specific tool is dollar cost averaging. While prices are fluctuating we invest uniformly. Over time making the same investment, levels any crests or valleys that the long-term investor encounters. Whether it be periodically investing in an IRA or the payroll withholding in a 401k, dollar cost averaging provides a more consistent return as the market rebounds.
Even professionals have a difficulty timing the market. Currently, we are in a situation that has no precedent; there is no foreshadowing. Trying to guess what is about to happen will only derail the long term growth of your wealth. A CFP, with any experience, will keep you on track.
The role of a financial planner is to help you prioritize your goals for the optimal outcome. Like any good rocket scientist knows, you must have a good return.
Charles T Shearman, CFP
Prospero Financial Planning