Warning, nerd alert. I had the chance to meet
with two wonderful financial planners recently. While I was waiting for our
meeting to start, I was looking at some charts that they had up on their wall.
One
of the charts was of the stock market over the
last 100 years, along with different events that happened during that time
period. One line of the chart included the different presidents that have been
in office over the last 100 years.
As I was looking at the chart and making sense
of the information, Jenny one of the planners walked into the meeting room. She
and I talked for a minute about the chart and how they use it to help communicate
with their clients about investing. Jenny made the observation that despite
what her clients believe about the current president, the stock market has
performed positively during both democrat and republican presidents. This
discussion reminded me of two important investing lessons.
1. The need to look at the big picture
2. Our assumptions about why things happen can
be wrong
When it comes to investing we all have to
contend with our emotions, perceptions of risk, and why we think things happen
the way that they do, but when we can look at data and talk with someone else
about our perceptions, we then have a chance to see things in a new light.
Before I loose you, I realize that the very idea
of looking at investment charts is intimidating. Yet this may be the very thing
that you need to consider for overcoming your fear of investing. Having a
professional help answer all your questions, can in turn help you feel
confident about making the best decisions for your family. None of us have
perfect information, but professionals through their years of education and
experience can usually help put things in perspective.
When it comes to investing, the more that you
understand, the more likely you will feel confident to use investing to provide
for your families future. Too often the investment world is positioned as a
risky one, yet with a good advisor on your side, you will grow in your
confidence about inventing. The planners that I met with are members of the National
Association of Personal Financial Advisors. This group has very
strict guidelines for membership and client advocacy. I trust that these
professional would be well qualified to help make sense of investing for you
and your family.
