“TO THINE OWN SELF BE TRUE”

(as if you could do anything else)
 

Shakespeare's quote, “To thine own self be true, and it must follow, as the night the day, thou canst not then be false to any man “ was written over 400 years ago. He knew too that investors should accept who they are.
 

I probably answer a 100 different financial questions every week. Clients like you and future clients have concerns that prompt questions. Important questions. My answers are always economic in nature but most clients need more than an economic answer. The headlines make us believe that opportunity knocks every day. I wish that were true. After 33 years of financial planning I would say it's more like four or five times a year. Most times it is terribly inconvenient.
 

The latest example was October 15^th (my birthday) when the Dow Jones Industrial average hit a low of 15,827. For a week all of the years gains were erased and investors found them selves at a loss. If it were a scene from Shakespeare's Hamlet the Dow would be seen falling on a sword. A slow down in China's economy, the end of the Fed's quantitative easing and gold down almost 35 percent. Falling to the same price it was five years ago in November 2009.
 

Miraculously, by the 23rd the DOW was even on the year and today just a few points from new all time highs. Yes terribly inconvenient.

I had a mentor who was famous for saying “If you were going to do it you would just do it”. It is the same reason all of those exam prep courses (and your spouse), tells you the first answer is the true answer. No matter what an adviser, friend or mentor tells you you will never commit a large percentage of your net worth to something that clashes with your investment personality. My advice?... Quit torturing yourself.

The hardest thing to do is “To thine own self be true”. Whether you want income, growth or are desperate to insure your principal your investment personality is in control. We all feel the clock (well anyone over 45). It pushes us to compare ourselves to people we know or play woulda shoulda coulda till the wee hours of the morning.
 

If you want income ask about the best income alternatives. If you want your net worth insured ask about the best principal guarantee options. If you want growth and have visions of owning your own jet then ask about that. Everyone wants to make more money and pay less taxes. But that is where the similarity ends...Here is what I know for sure...You won't stay with the plan and hit your goals if it clashes with your investment personality.
 

We all speculate and go outside our comfort zone with small percentages of our net worth. But if we are asked what we would do with 50 percent or even 20 percent of our net worth the answer is not the latest investing fad.
 

Hoards of officials both public and private want warning labels printed on everything everywhere (As if a warning label could tell the future). My point to this ridiculous practice is that what you do with the bulk of your net worth, whether at risk or not has everything to do with 2 things. And only two things: Your personal view of the future and your worry over missing out on the next great run.
 

So if opportunity knocks only four or five times a year and is terribly inconvenient how can you be ready? By knowing and believing in your own investment personality. It might be a blend of the three but like your own personality you will be dominant in one of these three. You will either want Income or want Growth. Or be desperate to insure what you've got. Your investment personality is dominant in one of the three.

No matter what, when the question is What to do with a large percentage of your net worth? The solution will always match your investment personality. How will you know when it doesn't? You will obsess over the decision. If you do go off the reservation it will be with an amount so small that it won't affect your life. My advice... stop playing woulda shoulda coulda and start looking at the best opportunities that match your investment personality.
 

Opportunity knocks 4 or five times a year. Spend the time now so you won't be shocked.

Yours Truly, Steve...PS. Need more personal one on one time to explore your investment personality? Just email me. We can do it in person or on the phone...Steve