Don’t Stray From the Plan

In the past few weeks, markets have been stressful with gyrations almost daily. During times like these, it can be useful to revisit one’s plan. We work with our clients on their entire financial lives – not just asset management. A good, thoughtful plan can keep you on track for the long haul, through many gyrations in markets and in life. There are perils to wandering away from the plan – perhaps you heard about the sheep in Australia this week who wandered off and was not sheared for six years.

 This is what happens when you abandon the plan.

This is what happens when you abandon the plan.

Poor fella. Fortunately, he was found, sheared and all is well again. Similarly, while we are not handy with shears, we are equipped with top notch financial planning software and more than 25 years combined experience in long-range forecasting and modeling.

Sometimes the market, or life, put us through stressful times, and we are tempted to abandon the plan. That is often the best time to revisit the plan, do a little stress testing, scenario analysis or even just have a discussion that we haven’t had in a while.

We model our clients’ financial plans with the worst investment years – generally back to back double digit losses – expected right at retirement time. This is the worst time to encounter losses, and while we think this is an unlikely possibility, we want to build in conservatism to their plans. From there, together with our investment management process, we work to help clients think about what steps need to be taken to achieve their goals.

Feeling a little stressed about the markets, your future or the plan? Give us a call and come in to chat and we can help you get comfortably back on track. Don’t wander off too far.