Mastering the Art of Investing: Key Tips for Success
Investing can be a powerful tool for building wealth and securing financial freedom. Whether you're a seasoned investor or just starting out, understanding the fundamentals of investing is crucial for making informed decisions and achieving your financial goals. Here are some essential tips to help you master the art of investing and grow your wealth.
1. Understand the Risk
Every investment comes with its own level of risk. Before diving into any investment opportunity, take the time to understand its risk profile. Factors such as volatility, market conditions, potential returns, and overall stability should all be considered. It's important to align the risk profile of an investment with your own risk tolerance and financial goals. High-risk investments may offer the potential for high returns, but they also come with an increased likelihood of loss if not managed properly. Conversely, low-risk investments may offer more stability but potentially lower returns. Understanding the risk profile will help you make informed decisions and manage your portfolio effectively.
2. Diversify Your Portfolio
Diversification is a key strategy for managing risk and optimizing returns. By spreading your investments across different asset classes, geographic regions, sector concentrations, and company sizes, you can reduce the impact of volatility in any one area. Diversifying your portfolio helps to mitigate the risk of significant losses from any single investment. It's important to avoid concentrating your investments in just a few assets, as this can leave you vulnerable to market fluctuations. Consider diversifying across stocks, bonds, real estate, and other investment vehicles to build a well-rounded portfolio that aligns with your risk tolerance and financial objectives.
3. Stay Informed
Keeping up with the latest market trends, economic developments, and investment opportunities is essential for successful investing. Stay informed by reading financial news, following market indicators, and understanding the factors that can impact your investments. Regularly review your portfolio to ensure it remains aligned with your investment goals and risk tolerance. Consider staying informed about the industries and sectors in which you're investing, as well as keeping track of global economic trends that could affect your portfolio. By staying informed, you can make proactive decisions and adapt your investment strategy to changing market conditions.
4. Set Clear Financial Goals
Before you start investing, it's important to define your financial goals. Whether you're investing for retirement, a major purchase, or wealth accumulation, having clear objectives will guide your investment strategy. Determine your investment time horizon, risk tolerance, and expected returns based on your financial goals. Setting clear goals will help you stay focused and disciplined in your investment approach, and it will also provide you with a benchmark for measuring your investment performance over time.
5. Regularly Rebalance Your Portfolio
Over time, the performance of your investments may cause your asset allocation to drift from its original targets. Regularly rebalancing your portfolio ensures that your asset allocation remains in line with your risk tolerance and investment objectives. Consider rebalancing your portfolio annually or whenever significant market movements cause your asset allocation to deviate significantly from your target levels. Rebalancing allows you to "buy low and sell high," bringing your portfolio back to its intended risk and return profile.
6. Practice Patience and Discipline
Successful investing requires patience and discipline. Avoid making emotional decisions based on short-term market fluctuations and stick to your long-term investment strategy. Remember that investing is a marathon, not a sprint, and that building wealth takes time. Maintain a disciplined approach to your investment strategy, especially during periods of market volatility, and avoid succumbing to fear or greed.
In conclusion, mastering the art of investing requires a solid understanding of risk, a diversified portfolio, staying informed, setting clear financial goals, regularly rebalancing your portfolio, and practicing patience and discipline. By following these key tips, you can position yourself for long-term investment success and work towards achieving your financial aspirations. Whether you're investing for retirement, wealth accumulation, or other financial goals, a well-thought-out investment strategy can help you build a secure financial future.
Happy investing!
Key Strategies from Past Financial Behaviours
Based on insights from past financial behaviors and challenges, several sustainable money management strategies can be developed to align with our behaviors and habits. These strategies incorporate the lessons learned from reflecting on previous experiences, creating a more realistic and effective approach to managing money. Here are some key strategies:
1. Create a Realistic Budget: Instead of setting an idealistic budget based on best-case scenarios, use insights from past spending habits to create a realistic budget that aligns with your actual income and expenses. Analyze past bank statements and receipts to understand your typical spending patterns and identify areas where adjustments can be made. By acknowledging past spending behaviors, you can design a budget that reflects your lifestyle while still prioritizing savings and financial goals.
2. Set Achievable Savings Targets: Rather than aiming for arbitrary savings goals, use insights from past saving habits to set achievable targets. Review your past savings patterns and identify the factors that contributed to successful saving periods. Whether it was automating savings transfers, cutting back on specific expenses, or finding additional sources of income, leverage these past successes to set realistic and achievable savings goals for the future.
3. Address Emotional Spending Triggers: Reflect on past instances of emotional or impulse spending and identify the triggers that led to these behaviors. Whether it was stress, social pressures, or unmet emotional needs, understanding these triggers can help you develop healthier coping strategies and mitigate impulsive financial decisions. By addressing the psychological aspects of money management, you can reduce the impact of emotional triggers on your spending habits.
4. Build a Financial Safety Net: Use insights from past financial challenges to prioritize the creation of an emergency fund or financial safety net. Reflect on past unexpected expenses or financial crises that created stress and uncertainty, and use these experiences to emphasize the importance of building a cash reserve. By setting aside funds to cover unanticipated costs, you can reduce the impact of future financial disruptions and improve your overall financial security.
5. Track Progress and Adjust Accordingly: Incorporate insights from past attempts to manage money into a dynamic approach that allows for ongoing adjustments. Regularly review your financial progress and assess how your current behaviors align with your money management goals. If certain strategies are not working or if unexpected expenses arise, be prepared to adapt and modify your approach based on past experiences and new insights.
6. Seek Financial Education and Support: Leverage past financial challenges as motivation to seek out education and support in managing money. Whether it involves attending workshops, seeking guidance from financial professionals, or exploring online resources, use insights from past experiences to invest in your financial literacy and decision-making skills. By proactively seeking knowledge and guidance, you can strengthen your ability to navigate financial challenges and make informed money management decisions.
7. Practice Mindful Spending: Utilize insights from past overspending or impulse buying to cultivate a more mindful approach to spending. Prioritize intentional and conscious spending by being mindful of your purchases and considering their alignment with your long-term financial goals. By incorporating mindfulness into your spending habits, you can reduce wasteful expenses and make more deliberate financial decisions.
By integrating these sustainable money management strategies based on insights from the past, individuals can develop a more realistic, proactive, and effective approach to managing their finances. These strategies leverage the wisdom gained from reflecting on past behaviors and challenges, helping individuals create a more aligned and sustainable path to financial well-being.
This is all covered from beginning to end in my Financial Management Program. I am with you the entire way taking the pressure and overwhelm off of you and tapping into my expertise, skills and support to change your financial landscape for good.
The Path to Self Directed Investing
Investing is one of the most powerful tools for building wealth and achieving financial goals. While the concept of self-directed investing might seem daunting at first, taking control of your investment decisions can be empowering and rewarding. Whether you're looking to save for retirement, build wealth, or achieve other financial milestones, self-directed investing offers the flexibility and autonomy to manage your own investment portfolio.
Here are some key steps to help you begin your self-directed investment journey:
1. Education and Research
Before diving into the world of self-directed investing, it's essential to educate yourself about the fundamentals of investing. This includes understanding different asset classes such as stocks, bonds, and ETFs, as well as gaining insights into investment principles, risk management, and market dynamics. Fortunately, there are numerous resources available, including online courses, books, and articles, that can help you build your knowledge and confidence.
2. Set Clear Goals
Determining your investment objectives is crucial to your success as a self-directed investor. Take the time to set clear and realistic investment goals, whether it's saving for retirement, funding a major purchase, or achieving other financial milestones. Having well-defined goals will guide your decision-making process and help you stay focused on what matters most to you.
3. Choose the Right Account
Selecting the appropriate type of investment account is a critical decision when embarking on your self-directed investment journey. Depending on your financial goals and tax situation, you may consider options such as Tax-Free Savings Accounts (TFSA), Registered Retirement Savings Plans (RRSP), or non-registered accounts. Each account type has its own tax implications and contribution limits, so it's essential to understand the features of each before making a decision.
4. Select a Reputable Brokerage
Research and choose a reputable brokerage or investment platform that offers a self-directed investing option. Consider factors such as trading fees, account minimums, investment options, research tools, and customer service. Many brokerages also offer demo accounts or virtual trading platforms that allow you to practice without risking real money, which can be beneficial for beginners.
5. Develop an Investment Strategy
Formulating a clear investment strategy is paramount to your success as a self-directed investor. Define your investment strategy based on your risk tolerance, time horizon, and financial objectives. Will you focus on individual stocks, index funds, ETFs, or a combination of investment products? Having a clear strategy will help you make informed investment decisions that align with your goals and risk tolerance.
6. Diversify Your Portfolio
Diversification is a key principle in managing risk within your investment portfolio. By spreading your investments across different asset classes, industries, and geographic regions, you can reduce the impact of market volatility on your overall portfolio. Diversification can help smooth out investment returns over time and lower the risk of significant losses from any single investment.
7. Monitor and Rebalance
Regularly reviewing your investments and making adjustments as needed is crucial to ensure they remain aligned with your investment strategy and risk tolerance. Rebalancing your portfolio may involve selling investments that have performed well and reallocating funds to areas that have underperformed, maintaining your desired asset allocation. This ongoing management can help ensure that your portfolio stays in line with your investment objectives.
8. Stay Informed
Staying informed about market trends, economic indicators, and news that may impact your investments is essential for making informed decisions. Keeping abreast of relevant information can help you adapt to changing market conditions and make adjustments to your investment strategy as needed.
In conclusion, self-directed investing requires time, research, and ongoing management. It's essential to continuously educate yourself, stay disciplined, and seek advice from financial professionals when needed. If you're a woman who seeks to take control of your financial future through self-directed investing, know that you are not alone. I am passionate about helping women like you navigate the world of investing and embrace financial independence. Whether you are just starting or looking to enhance your investment knowledge, I'm here to support and guide you on this empowering journey. Don't hesitate to reach out
Navigating Key Financial Milestones: When to Seek Guidance from a Financial Advisor
It’s always advantageous to hire a Financial Advisor, but here are a few key life events you need to pay close attention to;
1. Marriage or Divorce: Hiring a Financial Advisor can be highly advantageous during marriage or divorce. Advisors can help you navigate the financial implications of these significant life changes, such as combining or separating assets, adjusting insurance coverage, and developing a new financial plan. We also provide valuable insights into tax implications, estate planning and retirement savings. During challenging times, we serve as a reliable source of support, helping you navigate through uncertainties while providing essential advice and consideration for your financial aspirations and goals. The right Advisor will help you stay on track and make informed decisions by offering valuable insights tailored to your unique circumstances. With their professional guidance, you can maintain a steady financial course, even during difficult periods in life.
2. Starting a Family: When you are planning to start a family, we play a crucial role in helping you prepare financially for the journey ahead. We can assist with budgeting for pregnancy, maternity leave and childcare expenses, ensuring you are well-prepared for the associated costs. Moreover, we will also guide you in setting up education savings plans for your children’s future education, helping you navigate through various options and make informed investment decisions. We also help you reassess your insurance coverage to ensure adequate protection for your growing family, considering factors such as life insurance, health insurance, and disability insurance. By seeking the advice of a financial advisor during this significant life event, you can feel more confident and prepared as you embark on the exciting and rewarding journey of parenthood.
3. Career Transitions: Changing jobs or starting a business, often come with significant financial implications. An Advisor can provide invaluable assistance during these times of change. We can help you understand and manage the financial impact of transitioning retirement accounts, ensuring that you make informed decisions regarding your savings and investments. We can also assist in evaluating employee benefits, helping you navigate through different options and select the most suitable ones for your financial goals and circumstances. We guide you in creating a long-term financial plan that aligns with your new career path, taking into account factors such as income changes, potential business expenses, and future financial aspirations. With our expertise, you are able to navigate these career transitions with confidence.
4. Inheritance or Windfall: When you unexpectedly receive a large sum of money through inheritance, lottery winnings, or other windfalls, it's important to have a clear plan on how to manage and invest those funds wisely, and we can be immensely helpful in this situation. We provide valuable guidance on creating a comprehensive financial plan, taking into account your current financial situation and future goals, while assisting in developing an investment strategy that aligns with your risk tolerance and helps you grow your newfound wealth over time. We can provide insights into tax considerations associated with these windfall amounts, helping you optimize your tax efficiency and minimize any potential tax liabilities.
5. Planning for Retirement: Planning for retirement is a crucial and complex process, and a Advisor can provide invaluable assistance every step of the way. As you approach retirement age, we can help you assess your current financial situation, taking into account factors such as savings, investments, and expenses. We also work with you to determine your retirement goals and aspirations, considering factors such as desired lifestyle, healthcare costs, and travel plans. With this understanding, we help you create a retirement income plan that ensures your financial needs will be met throughout your golden years. We also assist in managing your investments to align with your retirement goals and risk tolerance, and help you diversify your portfolio, rebalance when necessary, and make adjustments to help you maximize returns while minimizing risk. We also provide guidance on making important decisions related to gov’t benefits (CPP & OAS), pension options, and other retirement income sources.
There are several significant milestones in life where seeking the guidance of a financial advisor can make a world of difference. Whether you are going through career transitions, receiving a windfall, or planning for retirement, a financial advisor can provide the expertise and support needed to navigate these complex financial decisions. It is essential to find a trusted and qualified financial advisor who specializes in your specific needs. No matter the stage of life, a financial advisor brings expertise, objectivity, and tailored strategies to help you achieve financial success. Remember, it's never too early or too late to seek their guidance. So, take the first step and find a financial advisor who can assist you in achieving your financial dreams and enjoying a prosperous future.
Coping Strategies for Managing Financial Stress
Financial stress is a common issue faced by many individuals, especially during uncertain economic times or when experiencing personal financial difficulties. If left unaddressed, financial stress can take a toll on mental and physical well-being. In this blog post, we will explore effective coping strategies that can help manage financial stress and promote a healthier relationship with money.
1. Create a Budget:
Developing and sticking to a budget is essential for gaining control over your finances and reducing stress. Begin by assessing your income and expenses, prioritizing essential spending, and finding areas where you can cut back. A budget provides a clear picture of your financial situation and helps you make informed decisions.
2. Seek Professional Guidance:
If you're struggling with financial stress, consider consulting a financial advisor or credit counselor. These professionals can provide expert advice tailored to your specific circumstances, helping you develop a realistic financial plan and explore options for managing debt, increasing savings, or improving your overall financial well-being.
3. Practice Mindful Spending:
Mindful spending involves being intentional and aware of your financial decisions and habits. Before making a purchase, pause and ask yourself if it aligns with your values and priorities. Assessing your needs versus wants can help curb impulsive spending and foster a more mindful approach to managing your money.
4. Build an Emergency Fund:
Having an emergency fund can provide a sense of security and reduce financial stress. Start small by setting aside a portion of your income each month and gradually work towards building three to six months' worth of expenses in savings. Having this safety net can help alleviate anxiety about unexpected expenses or income disruptions.
5. Take Care of Your Physical and Mental Well-being:
Engaging in self-care practices is crucial for managing financial stress. Exercise regularly, practice healthy eating habits, get enough sleep, and take time for activities you enjoy. Taking care of your physical and mental well-being can improve resilience, reduce stress levels, and help you approach financial challenges with a clearer perspective.
6. Communicate Openly:
Financial stress can impact relationships, so it's important to openly communicate with your loved ones about your financial concerns and work together on finding solutions. Sharing the burden, brainstorming ideas, and providing emotional support can make the journey less overwhelming and foster a stronger support system.
7. Focus on What You Can Control:
While some financial factors may be beyond your immediate control, focusing on what you can control can empower you to take positive steps. Concentrate on building your financial knowledge, seeking opportunities for additional income, or acquiring new skills that can enhance your earning potential. Putting energy into actionable steps can help reduce feelings of helplessness.
8. Practice Gratitude:
Cultivating an attitude of gratitude can shift your perspective and reduce stress. Take a moment each day to reflect on the things you are grateful for, even if they are unrelated to your financial situation. This practice can foster a sense of abundance and contentment, helping you maintain a positive outlook during challenging times.
Managing financial stress is essential for maintaining overall well-being. By implementing coping strategies such as budgeting, seeking professional guidance, mindful spending, building an emergency fund, taking care of your well-being, open communication, focusing on what you can control, and practicing gratitude, you can alleviate stress and regain control over your financial situation. Remember, it's a journey, and small steps towards financial stability can have a positive impact on your life.
If you require support tailored to your needs I have a elite Financial Management Program where we work one on one, auditing cash inflows and outflows, creating a budget, savings plan, accountability, coaching, mindset. You name it; I’ve got you covered! Reach out today under the contact tab and id be happy to set up a meet and greet!
Part of my Money Story! The shame, the guilt and the debt that kept me feeling heavy
I’ve been broke, visiting the food bank to feed my kids after my divorce broke! Sitting on 30k lawyer debt and other variable debt to get through with no end in sight, ordered to pay support and offset child support kills a girls’ finances! I was a mess emotionally and drowning in financial obligations and stress as a newly single mom!
ANNNND, I’ve also painstakingly crawled out of that debt with determination and focus to get out! It was either that or bankruptcy, which I wanted to avoid at all costs. It was absolutely hell and an uphill battle. I’ve owed the gov’t thousands of dollars in the past, I’ve lost out on many, many tax benefits as the support I paid showed the courts our children were “dependent” on my ex. Go figure! Equivalent to spouse, and child deductions are a real bonus when it comes to tax time as I swiftly found out!
I’ve researched for hours on many different occasions to utilize financial support, subsidy, grants, scholarships, anything that could help take the pressure off during different phases of my life. And, I also hid in shame as I fought for my kids and myself.
In my journey I’ve had a 800+ credit score, and I’ve had a 600 credit score and everything in between. I’ve made 15k, and I’ve made 6 figures. I’ve been 60k in debt and I’ve been zero in debt. I’ve had a positive money mindset, and a negative money mindset.
You see, our money story and our financial path is never linear. We don’t talk about this enough, and it needs to be given a voice, it needs to be given the chance for others to say me too 🙋🏻♀️ I’m struggling and I need help! Our worth does not sit in our bank account! We carry so much shame and guilt for the situation we’ve put ourselves in or the one we ended up in that we keep it in hiding and ultimately in the toxic and vicious cycle.
Brene Brown says “shame needs three things to grow; secrecy, silence and judgment.” Shame grows when it’s not given a voice.
You know the easiest fix? To talk about it. To ask for help. Opening up and discussing our struggles, fears, and vulnerabilities can be incredibly powerful and transformative.
It allows us to release the burden we’ve been carrying, gain new perspectives, and develop solutions. Asking for help is not a sign of weakness, rather a demonstration of strength and self-awareness. Buy reaching out to others, We invite support, guidance and opportunity to grow stronger. We are not defined solely by our financial stories or the stories we tell ourselves; there is so much more to each of us. Sharing stories allows us to challenge are shame and embrace our inherent worth.
Observing the Cyclical Swings: A Journey through Mortgage Rates
Reflecting on my experience joining the finance industry back in 2003, I find myself marveling at the cyclical nature of mortgage rates. The years that followed brought about significant fluctuations, as mortgage rates started higher, plunged to historic lows, and have now come full circle, hovering where they were almost two decades ago. In this post, I will take you on a journey, exploring the shifts and swings in mortgage rates throughout the years and the Covid-19 era that has brought us full circle.
1. Beginning in 2003: Higher Mortgage Rates
As I embarked on my career in the finance industry, I recall a time when mortgage rates were slightly higher compared to present. These rates were influenced by various factors, including economic conditions, inflation rates, and the demand for housing. Prospective homeowners faced higher borrowing costs, making mortgage approvals challenging for many. It was a period where affordability was impacted, and the housing market demanded more from aspiring homeowners. However, little did we know that winds of change were stirring...
2. The Financial Crisis and the Reversal:
The year 2008/2009 brought forth the global financial crisis, and with it, an unforeseen turn of events for mortgage rates after hitting the peak. Central banks and governments implemented measures to stabilize the markets, resulting in a reversal of the cycle. Mortgage rates began to plummet, offering a once-in-a-lifetime opportunity for homeownership throughout the following years. The monetary policy changes brought relief to both aspiring homeowners and existing mortgage-holders, spurring an upswing in the market.
3. The Record-Breaking Lows:
The years following the global financial crisis, mortgage rates experienced a sustained period of reaching record-breaking lows. This offered a unique opportunity for affordability in the real estate market. There was a palpable atmosphere of optimism as the effects of the crisis gradually faded, and people began to regain confidence in the economy and housing sector. The low rates acted as a catalyst, stimulating activity in the housing market and encouraging individuals to take advantage of the favorable conditions. People genuinely believed they had entered an era of historically low rates, with dreams of refinancing, purchasing homes, and building their wealth. It seemed the pendulum had swung as far as it could go, but as always, change was inevitable…
4. The COVID-19 Era and the Unforeseen Impact:
As the world faced the COVID-19 pandemic, the mortgage market experienced unexpected turbulence. Governments implemented lockdowns and restrictions, sending shockwaves through various industries, including real estate. In response, central banks and governments again intervened to stabilize the economy. Mortgage rates plummeted to record-breaking lows as a means of stimulating the housing market and encouraging economic recovery. These historic lows in mortgage rates during the COVID-19 era presented unique opportunities for potential homebuyers, existing homeowners looking to refinance, and real estate investors. Many individuals seized the moment, taking advantage of the affordability and favorable lending conditions. And, once again, change is inevitable…
5. Coming Full Circle in Uncertain Times:
Fast forward to the present day, and we find ourselves on the brink of a renewed cycle. As the world grapples with economic uncertainties and market forces shift, mortgage rates have begun to rise steadily. The gradual climb, while still relatively low compared to the past, has brought rates to levels that closely resemble those of 2003. The cyclical nature of mortgage rates remains a consistent backdrop to unpredictable world events and has taught us that no phase lasts forever, emphasizing the importance of being prepared for change. As we navigate the continuing effects of the pandemic and its economic fallout, it is important to remain vigilant about the potential for future rate changes and their impact on our financial decisions.
Conclusion:
Embarking on my journey in the industry has offered a unique perspective on the cyclical nature of mortgage rates. Observing the ebb and flow of rates over the years, from higher levels to groundbreaking lows and now returning to where we started, encourages a clearer understanding of the larger economic patterns at play. As we navigate the current landscape, it is imperative to recognize that mortgage rates will continue to evolve, reminding us to remain adaptable and well-informed throughout the ever-changing cycles.
The Power of Emergency Savings
In today's unpredictable world, having a robust emergency savings fund has never been more critical. A sudden job loss, unexpected medical expenses, or an unforeseen home repair can throw any well-laid financial plans into disarray. That's where the importance of a high interest savings account comes into play. In this blog post, we'll explore the benefits of storing your emergency fund within a high interest savings account, where it can grow at a steady pace while providing you with peace of mind.
1. Safety and Security:
When it comes to safeguarding your emergency funds, it's essential to prioritize safety. High interest savings accounts (HISA) are typically provided by reputable financial institutions that are heavily regulated, offering you the peace of mind that your funds are secure. These accounts are often insured by government-backed programs, providing additional layers of protection against potential losses. With this solid backing, you can rest assured that your emergency fund is in safe hands.
2. Competitive Interest Rates:
A key advantage of high interest savings accounts is their ability to earn interest at rates far superior to traditional savings accounts that sit around. While the interest rates in other accounts might be negligible sitting at around .2%, high interest savings accounts offer a substantial return on your money. With current rates ranging between 4% and 4.5%, your emergency fund has the potential to grow considerably over time, enhancing your financial stability. During 2020-2022 most HISA sat at 0%, this is because the interest rates follow the Federal Bank.
3. Liquidity and Accessibility:
In emergency situations, swift access to funds is crucial. High interest savings accounts strike the right balance by providing both liquidity and accessibility. Unlike other financial instruments where your money may be locked up for extended periods, high interest savings accounts allow you to withdraw your funds when needed, offering greater financial flexibility during turbulent times.
4. Compound Interest Effect:
When it comes to growing your emergency savings, compounding is a powerful ally. High interest savings accounts compound interest either daily, monthly, or annually, allowing your money to grow at an accelerated rate. As interest is continuously reinvested and added to your principal balance, the compounding effect amplifies the overall growth of your savings over time. This compounding phenomenon can make a significant impact on your emergency fund, helping it to grow even faster. $15,000 at 4% for one year is $623.
5. Navigating Interest Rate Fluctuations:
While high interest savings accounts typically offer competitive rates, it's essential to acknowledge that interest rates can fluctuate in response to economic conditions. The advantage of a high interest savings account lies in its ability to provide a higher baseline interest rate compared to traditional savings accounts. However, it's important to stay informed about any potential rate changes and adjust your emergency fund strategy accordingly.
When interest rates rise, the return on your emergency savings fund can increase, providing an opportunity for even greater growth. On the other hand, when rates decline, it's crucial to monitor the overall interest rate landscape and be prepared for potentially lower returns. Staying proactive and informed will allow you to make necessary adjustments, such as exploring alternative high interest savings accounts or gradually reallocating some funds if more favorable options become available.
Remember, the objective of an emergency savings fund isn't solely dependent on interest rates but rather its primary purpose of providing financial stability during unforeseen circumstances. However, it's prudent to consider interest rate fluctuations as a factor that could affect the growth and yield of your emergency fund. Stay vigilant and periodically reassess your options to ensure you're optimizing your emergency savings strategy.
5. Building a Strong Financial Foundation:
An emergency savings fund acts as a safety net, providing you with a solid foundation to weather unexpected financial storms. By utilizing a high interest savings account, you not only protect your funds but also give them the potential to grow. This empowers you to tackle emergencies without resorting to debt or depleting your other financial resources. Strengthening your financial position and having the ability to face uncertain times head-on gives you peace of mind, ensuring a more secure future.
Conclusion:
The importance of having an emergency savings fund can never be overstated. By opting for a high interest savings account, you'll maximize the growth of your funds while ensuring their safety and accessibility. With competitive interest rates and the power of compounding, your emergency fund will have the potential to flourish and provide you with the security you need. Embrace the benefits of high interest savings accounts and take control of your financial well-being, empowering yourself to overcome any financial curveballs that may come your way.
Robo Advisor, DIY Investing, or Financial Advisor?
Making investment decisions can be daunting, but there are various strategies available to help you grow your wealth. In this blog post, we will explore three popular approaches to investing: Robo Advisor, DIY Investing, and Financial Advisor. Each option offers unique benefits and considerations, allowing you to make an informed choice that suits your financial goals and preferences.
Robo Advisor: Efficiency meets Expertise!
Robo advisors have revolutionized the investment landscape by leveraging advanced algorithms to automate portfolio management. Here are some key advantages and potential drawbacks of utilizing a robo advisor:
Pros:
1. Automated investing for busy individuals: Robo advisors allow you to relax as they handle your portfolios, saving you time and effort.
2. Diversification like a pro: These platforms spread investments across various asset classes, aiming to minimize risk while optimizing portfolio growth.
Cons:
1. Limited customization options: Robo advisors may not accommodate unique investment strategies, as their focus is on ease and efficiency.
2. Lack of human touch: If you prefer personal interactions and tailored advice, robo advisors may not fulfill your need for human empathy and understanding.
DIY Investing: Unleash Your Inner Financial Warrior!
DIY investing empowers you to take control of your investment decisions and manage your own portfolio. Here are some considerations when venturing into the world of DIY investing:
Pros:
1. Tailored to your goals: You have the flexibility to customize your investment decisions, aligning them with your specific financial objectives.
2. Seizing opportunities: DIY investing allows you to respond quickly to market changes and take advantage of exciting investment prospects.
Cons:
1. Learning curve: DIY investing requires a deep understanding of financial markets, trends, and risk management strategies, which may pose challenges for beginners.
2. Emotional biases: Investing alone increases the risk of being influenced by market hype or fear, potentially hindering your long-term wealth creation plans.
Financial Advisor: Experience You Can Rely On!
Enlisting the services of a financial advisor provides you with professional guidance and expertise. Here are some factors to consider when working with a financial advisor:
Pros:
1. Personalized advice: A financial advisor will create a customized investment strategy based on your goals and risk tolerance, tailoring it to suit your unique needs.
2. Stress reduction: By managing your portfolios, financial advisors allow you to focus on other aspects of your life while capitalizing on their expertise.
Cons:
1. Cost considerations: Financial advisors usually charge fees for their services, which can impact your investment returns. It is essential to assess and compare these costs.
2. Trust and compatibility: Choosing the right financial advisor requires diligent research to find someone you trust and who understands your aspirations.
Conclusion:
When it comes to choosing an investment strategy, it's crucial to consider your goals, risk tolerance, and personal preferences. Robo advisors offer convenience and diversification, DIY investing provides flexibility, and financial advisors bring professional guidance to the table. Assess your needs, weigh the pros and cons, and make an informed decision to unleash your wealth creation potential!
Which investment path resonates with you the most? Are you attracted to the efficiency and expertise of robo advising, the flexibility and control of DIY investing, or the reassurance and guidance of a financial advisor? Share your thoughts and embark on a conversation about the best approach to grow wealth!
Starting Over and Unsure Where to Start? Try here first.
Finances aside, everybody's starting over is going to be different, but I do think there are a few common denominators in every divorce, or even break up for that matter. And, often times when we are feeling stressed and overwhelmed it's a key indication we need to slow down, get quiet, and listen to our inner voice. Now is the time to cultivate a relationship with yourself, this could be the start of quite the journey of self discovery - if you let it.
"Use your pain as rocket fuel to your next level of self."- Mark Groves <~ he seriously is da’ 💣
Feel your feelings, like actually feel them. All the pain, grief, anger, shame.... all of it! Emotions are energy in motion, they are meant to be felt and moved through. If you push it away, deny the feeling or try to distract yourself (with shopping, sex, booze, staying busy) that feeling is going to persist only to get bigger and bigger and be more of a challenge to work through at a later date. Create a safe space to feel this, perhaps you crawl under a cozy blanket, light a candle, play soft music and let it happen, let it flow. You will be ok, remember the more you feel it, the more you heal it. If you are needing some tips on the somatics of emotions - please message me as this was part of training becoming a Coach.
Take the time to be alone. Do not get into another relationship to mask the pain you are feeling. This will not end the grief, it will only put it on hold and you will end up hurting people that you get involved with, or you’ll end up in another recycled toxic relational pattern. Resist the temptation and remain grounded in your healing journey so you can then build relationships from love and abundance, not fear and lack. Remember everything is energy. We want to create from the inside out.
Create your emotional support team. Whoever this may consist of, a family member, a good friend, a trusted confidante, a therapist. Build it, and build it well. Some suggestions;
You need a hype person to build you up when you feel like shit.
An empathetic, compassionate person to listen when things are heavy.
You need a person who inspires you to keep moving towards your dream.
You need a therapist to clean up your side of the street.
It’s helpful to lean on someone who has also been through what you’re currently going through.
It's helpful to tap into all resources you can, books, online resources, coach's, and support groups that share similar values as you.
Ask for help, yikes! lol, yes, I said it! And, I also understand that this can be the hardest thing to do especially for women who have conditioned themselves to be the strong one, the one who doesn't need help, the go getters, corporate leaders and do it yourselfers. But, you are not immune to this pain, when you notice yourself getting lost in depression, resentment or anxiety asking for help can save you from going down a negative path that you may have a hard time coming back from. I’ll share more on my journey there at a later date when I’m ready to.
And, my favourite one, connect with your passions and take care of yourself. Give yourself the gift of nourishing food, walks in nature, long bubble baths (dudes too if you’re still with me 😉 take a toy boat in the bath with you 😂 — if you didn’t get that reference we can’t be friends) anything that makes you feel cared for. Reconnect to your passions and hobbies, maybe you’d like to take a photography class, or join a rec sports team, add these into your life and start filling yourself up, this is the fun part (and sometimes hard part) about being single, you get to date yourself and it really is rewarding!! You might have to take small steps to get out of your comfort zone and **gasp** dine alone, so start small with a morning coffee with a book? Or, a drink on a patio solo. You have to teach yourself how to do it by practicing it and that’s the hardest part! You have to practice and INTENTIONALLY DO IT! Mel Robbins says 5-4-3-2-1, and get up and do it before your brain has a chance to argue.
Remember to honour yourself, and what you've been through. This journey is transforming you, let it. You are tearing down a old house and rebuilding a new one, built on a stronger foundation. Explore yourself and what you want your life to encompass, discover who you are at a soul level, start establishing new values, more powerful beliefs, newer more vibrant dreams.
If you have resonated with this post and have been looking for support getting to the next version of you take this as a sign to reach out and we can chat about how I can best assist you in reaching your goals. Book a call under the contact section.
Survey Says!
In an open survey directed towards women I asked the question: If you were given the opportunity to contribute advice and/or words of encouragement to a women’s empowerment guide after divorce what would it be, and the responses were powerful and inspiring.
Divorce can leave us feeling lost, confused, and overwhelmed. That’s why I want to create a space here or women to share their experiences and insights to help those who are now going through the same struggle. Here I will share some responses and hope these words will find you when you need them the most;
Don’t be too hard on yourself as you heal and figure it out. Spend time outside your comfort zone, and under the covers. Learn to know what you need in the moment.
How to find your “yes’ and no’s”
Your kids will be ok —> I teared up on this one, this is one thing I still struggle with is the guilt
Make sure your insurance is in order and don’t wait to get things done —> reach out if you need support here.
Be selfish and wise with your money. Think of your future not giving it all to your kids
You will make it through, I know it seems like there is no end in sight, struggling to find the light but when you keep going and don’t give up the light will eventually come. Find your supports, find a therapist and be kind to yourself. Take time off if you need, there’s no shame to put yourself first here
Know your non negotiables with yourself and others
Budget, income, how to transfer assets and how to have a good relationship with your ex
If possible, know what you want and your spouse wants from the divorce and come to an agreement outside the law office! In my experience, once lawyers were involved I was f*cked, not saying this would happen for you, but 30k in lawyer debt was my story, and there is so much regret and trauma about this process. #1 - utilize divorce mediation services or collaborative law if viable #2 work with a divorce coach to get to the agreement prior to lawyers office #3 use CFDA (Certified Divorce Financial Analyst) specifically trained in divorce
I offer many different programs and coaching packages to help you through this stage that can be tailored to your specific needs. Along with my professional designations and experience I also have the personal experience of divorce with two young children at the time. Book a call under the “contact” page and let’s tackle this together!
Sunk-Cost Fallacy
The sunk cost fallacy is a cognitive bias that occurs when people make decisions based on the amount of time, money, or effort they have already invested in a project or decision, rather than on the expected outcome or future costs and benefits. This could be bias leads people to continue investing in a project or course of action, even when it is no longer rational or beneficial, because they feel they have already invested too much to give up. This can result in poor decision-making and can prevent people from changing course or cutting their losses when it would be more advantageous to do so.
Here are a few examples of the sunk cost fallacy in finance:
1. Holding onto a losing investment: An investor may hold onto a stock that has been losing value for a long time, even when it becomes clear that the stock is unlikely to recover. This is because the investor has already invested a significant amount of money in the stock and does not want to take a loss.
2. Continuing to pay a high fee for a financial advisor: A person may continue to pay a high fee for a financial advisor even if the advisor is not providing any value, simply because they have already paid a lot of money for their services.
3. Investing more money in a failing business: A business owner may continue to invest more money in a failing business, even when it becomes clear that the business is not profitable. This is because they have already invested a significant amount of money and time in the business and do not want to give up.
4. Completing a project that is no longer necessary: A company may continue to invest time and money in a project even after it becomes clear that the project is no longer necessary or valuable. This is because they have already invested a significant amount of resources in the project and do not want to abandon it.
When making a decision whether to change or keep doing things the same. Don’t get stuck in “I’ve already put so much I to this, I just have to keep doing it.”
Here are some ways to beat sunk cost fallacy:
1. Recognize and acknowledge sunk costs: The first step in overcoming sunk cost fallacy is to recognize and acknowledge that the costs that have already been incurred are sunk and cannot be recovered. Accepting that the past cannot be changed helps you to make decisions based on the current situation and future prospects.
2. Reassess the decision: Ask yourself if the decision you are making is based on the current information or your past investment. If the current situation does not warrant the investment, you should consider abandoning the project and moving on.
3. Evaluate the value of the investment: Evaluate the value of the investment objectively and see if it aligns with your goals. Consider the opportunity cost of the investment and whether the resources could be better used elsewhere.
4. Seek advice: Seek advice from a neutral third party, such as a financial advisor or a mentor, to help you make an objective decision. A fresh perspective can help you see the situation in a new light.
5. Practice mental accounting: Practice separating the money that has already been spent on a project from future decisions. This way, you can make decisions based on the future value of the investment rather than past investments.
Remember, sunk cost fallacy is a common cognitive bias, and it takes time and practice to overcome it. By recognizing and acknowledging sunk costs, evaluating the value of the investment, and seeking advice, you can make better decisions and avoid throwing good money after bad.
Transforming Your Life
I was separated at 29, divorced by 32 after a long court battle that only caused severe hurt, pain, trauma and anger.
At 35, I was tired of living the life I had been living, struggling, pushing through, approaching each day the same and just doing the things that I had to do in order to survive, playing the same script. I was tired, depressed, lacked support and didn't know what to do.
I am a spiritual being, a mystic, empath and intuitive. I pray, I meditate. I pulled an Oracle Card one night during prayer asking for guidance and the card I pulled was "Inspiration" and the message included one of being acutely aware of the signs my guides were sending me as there was things I was missing. One important guiding factor was to watch for signs of a bumblebee, whether it was pictures I come across, items in stores, or even someone dressed in a bumblebee costume!
As the days proceeded, I was following a Coach who had some really valuable content that I enjoyed watching, never really thought of hiring a personal coach, then she started posting bumble bees! Everywhere! In her stories, on her posts, she was a bumble connector bee! She was following her passion and her light when she attracted me, and she was just what I needed to shift my life.
I didn’t know that Life Coach’s were a thing at that time, sure there are sport coach’s, fitness coach’s, tutor’s etc, but a life coach!? The wildest thing, and she’s the reason I became a Certified Coach myself. I joined her 3.5 month group program where myself and seven other individuals worked to become our best selves. These seven people including my coach were my lifeline and support building a healthier more aligned life. I learned about my inner child, my limiting beliefs (no idea this was a thing!), the stories I chose to live in and that I have a choice to change my narrative. I didn’t need to be stuck in victim. I learned how to feel feelings I had internalized and how to express them in a healthy way, (still learn everyday!) I learned what dreaming feels like, what becoming my best friend feels like, a concept lost throughout my years. I started recognizing when I was stomping out my own fire and getting in my own way with my own fears, insecurities and stories!
I learned how to believe in myself - I never did before, I treated myself poorly because the message I received was I never enough, I didn’t know there was a different way. I reinforced that belief by putting myself in situations (unconsciously) where people would hurt me (because that felt normal), I created a pattern of doubt, of not being good enough, and feeling powerless and hurt. It was the only thing I knew how to do, and I kept getting stuck in a loop of self defeating thoughts, depression and anxiety not knowing I was doing it to myself.
I think all humans feel this on some level, it’s not until we become aware of what we are actually doing that we then have the power and choice to change it. This takes commitment, emotional intelligence, and self awareness. This is why I do the work I do supporting Women through big life transitions, I know what it is like to feel lost, alone and afraid. I gift you my knowledge that has taken me years to accumulate, so you don’t have to struggle and wonder for as long as I did. I have the keys and I want every woman in my line of sight to claim their life back, unapologetically!
Naturally, my 20 year career in finance, enables me to empower you to take control of your finances, which is a big deal while in the throws of transition and creating a new life! My coaching expertise then supports your new path, enhancing your money mindset, worth, and getting you unstuck!
How is this all connected you might ask? You will only accept what you think and feel you deserve. If you feel like shit, disrespect your body, lack boundaries, confidence and self awareness you will stay stuck in a unfulfilled life, no doubt about it. You will accept the unhappy and unfulfilling career, you will continue to experience toxic relationship and friendships like an old dirty shirt continuing to ask yourself why, you will seek coping mechanisms with terrible money and life habits. You will slowly rot and never know what you need or live your full potential, because this is the only way you’ve ever lived and the only way you know how!
When you treat yourself with love by eating healthy food, working on your esteem, beliefs, goals and habits, while growing your emotional intelligence, you are sending a very definite signal to the universe you are not f***ing around and demand better! You learn your boundaries and how to communicate them, you do not allow people to take advantage of you or allow misaligned people into your life. No more excuses for their shitty behaviour or your behaviour that used to accept it! Instead, you will rise up attracting strong healthy people who are supportive, inspiring, growth orientated, and encourage you to see the positive. You start accepting what you truly want in your life, which means inner richness, fulfilment and overall life alignment!
My desire is to build relationships and educate women who are on their healing journey and understand that monetary wealth is only a piece of our wholeness, (a very important piece!) I empower you and show you how to make smart financial decisions all while becoming your best self.
By getting curious about your money story, limiting beliefs, and false narratives you build a foundation of strength, resilience, empowerment and love that provides you the courage and confidence you need to live out the big dreams you have!
Do you need some extra support? Please book in a “Let’s Connect” chat. Go to my contact page and scroll to the bottom where it says “Book with Kimberly.”
Big Announcement
Welcome back to my blog! I trust you all had a amazing Summer filled with all of the moments you love!
As promised, it’s Fall of 2022 and I’m ready for THE BIG ANNOUNCEMENT!
I made a big bold move this Summer, which lead to me grieving an identity I had for half my life! I celebrated (and grieved) spending more time with my girls, going back home to see family, taking in a few concerts and festivals, spending time on the water, in the mountains and of course lots of self care and love as I transitioned my life.
I resigned from my career as a corporate employee in Wealth and Investment Advisory. This was a huge move that has been months, even years in the making. After 19.5 years I am honoured to of worked for a great company meeting so many great people who have become friends, and taking with me a plethora of knowledge, skills and determination.
Many of us know that our greatness is on the other side of fear. We know, in order to realize our dream we must make big bold inspired and strategic moves. I did just that and decided to pursue my business full time, my dream and vision to build a financial practice specializing with women in the midst of big life transitions.
My practice is built on the foundation of cultivating deeper relationships, empowerment and trust with my clients, backed by integrity and solutions that make sense. Wealth Inside Out serves women by adopting a holistic relationship based approach providing education, workshops, financial advisory and coaching empowering women to take control of their financial future so they can step into a new chapter inspired, and motivated creating a robust financial future for themselves.
This means I can support you with;
✅ Budget/Cash Flow Analysis and Accountability
✅ Debt management/Repayment Structure
✅ Investments Planning/Advice/Education
✅ Financial Literacy Skills and Independence
✅ Insurance Protection and Living Benefit
✅ Women’s Life Transitions
✅ Educate and empower financial independence
✅ Managing Divorce and Widowhood -> 2 incomes to 1 and emotional impact
✅ Identifying and breaking patterns getting in the way of your success
I help you get clear on your goals and develop a mindset essential to lasting abundance, fulfilment and happiness. Every relationship is unique in its own way and treated as such with packages tailored to individual needs, dreams and desires.
This is how I was meant to do business. I’m community, connection and compassion.
I’m so glad you’re here with me! If you need support, please reach out via contact page, and follow along on my IG and FB as I provide helpful content.
Kimberly Dawn
Summer Holidays!
Thanks for being here and supporting my mission! We are on Summer holidays, Wealth Inside Out Blog will be back September 1st. For the Summer I am enjoying my two girls, building the business on the back end and taking in as much sunshine as possible.
We have exciting announcements in Fall of 2022!
I hope you enjoy your Summer and find joy in your day.
Kimberly Dawn
You Are Enough
I do things differently. I'm not in a box, and I'm not for everyone. I like to talk about behaviours, psychology, emotions, trauma, spirituality and how our beliefs are built, along with teaching my skill set when it comes to finances. I tend to talk about things that are considered "taboo" and most may shy away from on a public platform. I like the idea of putting all this together and pushing the limits and the narratives we live by.
Our financial world needs a change, one that is more open, accepting and compassionate of one's situation. One that educates instead of sells, one that puts client relationship, trust and integrity at the top. We need more compassionate, judgement free zones where we have permission to take off our masks we hide behind.
I support women; single working moms, corporate mom's, divorcee's, widows and provide financial empowerment education. As a Single Divorced Working Mother (and yes, that deserves a title with all the capitals!) I know you well. I know the challenges of being a single mom, I know the emotional and financial toll divorce takes, I know the shame and guilt that comes with being a single mom, while navagating the pressure of wanting to provide the life we always dreamed of for children. These emotions run deep, and in finance we need to be going deeper. We need to be changing how we look, feel and manage money in order to make any lasting change.
Did you know that we all have a unique money story, just as we each have our own unique personal journey?
The way we were raised, the narrative we were taught, the discussions or arguments witnessed in childhood all carry forward to adulthood in ways you may not even be aware of.
In my discussions with many single working moms, their biggest worry was not giving or providing enough for her children. One Mom in particular was the amount of downsizing she had to do after her divorce.
She went from a large grand home, to a 2 bedroom apartment with 2 kids and she held so much guilt and shame for this, she continued to beat up on herself as she didn't feel like she was enough of a mom because of this, and if she could just get back what she had, it would be different.
This story also hits close to home, it was interesting as she spoke these words, she was describing my life 10 years ago freshly out of a marriage, walking away from everything I had owned including my house and into a 2 bedroom condo with 2 children on the "bad side of town". I felt her words deeply, knowing exactly the shame, sadness and pain she was feeling. As I probed her for the root of the pain, I asked what her childhood conditions were like, there, in that moment the lightbulb turned on. "Oh my goodness, we lived in low income housing," she said. "I was always so embarrassed, I always told myself that I would do better with my life. I never wanted people to see where I lived, I would be asked to be dropped off blocks away from my house."
These experiences shape who we are. Much like her as a kid I was raised by a single mom who worked three jobs, I told myself at a young age I would never let my kids know what never having enough felt like. And, in my darkest days, during my divorce while navigating being a single Mom, I shared the same feelings she was experiencing. When my 5 year old definition, my reality, my feeling of "didn't have enough" was now true.
But, what if at that time I knew more, what if I knew to question my beliefs? What if I knew this was a belief I currated from when I was a little girl experiencing lack, and it no longer has to be true? Can we challenge that thought and do the work to install a new belief?
This is why I’m here, to teach and bring awareness. AND, this is where YOUR work is if you find yourself resonating!
If you don't start to ask questions around why you operate and think the way you do, you will forever be living in your conditioned state of being. Our emotions run our money, our money story can get in the way of true wealth and happiness. Financial management and wealth creation are a piece of the puzzle. In order to live a truly fulfilled WEALTHY life we need to dig deeper into our stories, and investigate with no longer holds value, and then, how can we transform it into something that does provide value?
What’s Your Definition of Wealth?
I can't believe it, next January I'll be able to say I’ve been in the finance industry for 2 decades!! Woah 😳 that's a long time, and it makes me feel super old! I did start as a baby though, so lets keep that in mind ;)
Over these years I've gained substantial knowledge in financial management, and, these things have always remained; My integrity and dedication to clients and the relationships we build together are #1, fuelled with my passion for investment planning and providing financial education so my clients feel empowered and in control of their financial life, so they can feel free, and live the life they love!
What does wealth mean to you?
I’ll share mine as money is only a piece of the wealth pie, it plays a large role in my life and is used as a tool to help me (and help my girls) reach our goals, but true wealth isn't only monetary in my mind. It's feeling fulfilled from the inside out, it’s overall happiness and contentment in life, and enjoying more of the small moments we can easily take for granted. Its feeling grateful for our life and taking an extra beat in a fleeting moment. Its catching those moments being so in alignment with who we are that our heart and soul radiates energy that is magnetic and attracts all the synchronies and blessings into our life. It’s living outside our comfort zone and riding the edges of our heart so we can continue to expand into who we are. Wealthy is feeling fulfilled from the inside out.
Has your self worth been tied to your career, and security to money?
A question not typically asked or understood due to the vulnerability of it.
I wouldn't of questioned it until I started digging deep and realizing some of mine was...
Here’s some things I learned about wealth, and my career status when I decided to take a step away from my professional titles and being a “successful corporate woman”;
I’ve been in Finance for 19 years. I grew up in the corporate world and I very much adopted the mentality of excelling, performance, pushing myself and exceeding. I created this linear illusion of success that validated my power and worth. As long as I was climbing the corporate ladder and excelling I felt worthy. As long as I had money in my bank and investments with some zero’s behind it I felt like I was somebody. As long as I had initials behind my name representing different financial designations, and as long as I had a position of power I was strong and confident.
I tied a lot of my worth and who I was to my career, it became my identity. The money in my accounts was a form of security for me, albeit false, because no matter how much I had I never felt secure and was always operating in lack. I inadvertently built my worth and my security outside of myself, and it was conditional on how much I achieved.
It took intentional healing and slowing down to confront this truth. It wasn’t pretty, I chose to deconstruct who I built myself to be. I let go of titles and who others thought I was, along with beliefs and behaviours that were no longer serving me. This is part of being human and living a life in alignment. When we start to ask the hard questions, we begin to heal and we start to demand better for our life. We stop making excuses, and begin to cultivate our own inner richness and power, building a life from the inside out, not outside in. We no longer try to fit in someone else’s definition of who they think we are and give ourselves permission to let go, and evolve into our next version of self.
“Measuring wealth by money alone is spiritually empty. To obtain wealth of lasting kind, the kind that gives your life value, meaning and sustenance, base your daily existence on your spirit and seek more out of life.” ~ Deepak Chopra, MD
Do you want to feel more empowered and knowledgeable with your finances, as well as learn to live an abundant life aligned to your inner richness and not reliant on your bank account? Have you resonated with my words?
Contact me to find out what that could look like for you.
We all need teammates, and I’d like to be yours.
Don’t walk, RUN! The market is on sale!
The S&P 500 has lost 15% of its value since the beginning of this year.
Market crash/correction sounds scary, when in reality, history has shown its just a blip on the radar long term;
I’m not discounting the fear, the fear is real and I’m here to say you are allowed to feel that, but do NOT let the media sway you, do not let friends talk you into changing ANYTHING! Do not talk to your neighbour and take their tips and make a move you will later regret. Do not move! Avoid emotional knee jerk reactions and filter out the noise to avoid mistakes. (See my earlier post around emotional investing)
Market corrections are a normal part of investing. Since 1928, we've had 26 bear markets (decline) in the S&P 500, and 27 bull markets (incline). Gains during bull markets far outweigh the losses of bear markets.
Remember, we are playing the long game, (your money SHOULD NOT be in the market if it’s short term - it’s too risky!) and when investing for the long term this now provides you an opportunity to buy more shares at cheaper price to realize gains later.
Statistically, stocks lose an average of 36% in a bear market and gain an average of 114% in a bull market.
I read a great analogy today;
“When the shoes you love go on sale, we probably buy another pair in a different colour! We don’t try and sell our loved shoes at a discount”
Or how about this one;
“when you were dating in high school, and your partner broke up with you, At the time it’s devastating. 10 years later it’s pretty insignificant overall”
Bear markets can be an opportunity instead of panic! An opportunity to buy at a cheaper price.
If you are anxious and unsure this is the time having an advisor will pay dividends, reach out to them, or they should be reaching out to you to check in and smooth concerns. I went through the crash in 2008 with my clients, some unfortunately fear got the best of them, no matter what I had to say and they chose to cash in never recouping the loss, while the majority has a distant memory stayed invested for the long haul and reaped the rewards especially in 2013!
Albeit it was a bumpy, emotional and tremulous time for all involved - as an advisor we have our finger on the pulse, let us do what we do best.
You can refer to this graph for the bull (green) and bear (red) markets to show the history of the market and after a bear, always follows with a bull market to capitalize on.
Avoid Emotional Investing
People naturally tend to become emotionally invested in their own portfolios. They become overly greedy when markets are up and overly fearful when markets are down. The reasons for these attitudes are well documented by behavioural economics.
Having an Advisor keeps your emotions away from the investment process, amid all the volatility and unpredictability that markets show, the ultimate value of a planner is to keep you focused and in your seat. Focused more on your long term goals than the short term volatility of your portfolio. A really great article I read said, "A good Advisor will protect you, from you. No, your advisor can't stop you from feeling whatever emotions you're feeling, just like a guardrail can't stop every car from going into the ditch. In those moments where you want to push the eject button because you're scared, the advisor's job is to remind you of the plan you created and what you're working towards: "a fulfilling and successful retirement."
Good advisors help you navigate your emotions and coach you through choppy storms.
Isn't it also nice to have a partner for your journey to financial wholeness? Having someone in your corner who's as invested in your success as you are? I'm talking about an advisor who thoroughly knows you, your spouse, your kids, your dream job, your hopes and aspirations for your future. Someone who cares about you, knowing that your advisor truly has your best interest at heart is psychologically impactful. Just as people hire personal trainers or business coach's the advisor sets your up for success and roots for you every step along the way. If you don't have a connection with your advisor, I'd suggest you keep looking until you find one because they will make a world of difference.