It’s common for people to get perturbed about short term developments with their long term investments. That’s dangerous because it leads to emotional, knee-jerk reactions, and often this hasty response is to events of no lasting significance.
We just went through a short bout of apprehension a few weeks ago. The question is, as concerning as the issues seemed at the time, can you even remember the details of that crisis du jour? If you can recall it, does it still seem as potentially catastrophic now, or was it a tempest in a teacup?
I just had a client ask for her December 31 account balances going back to 2010. Here they are…
December 31, 2010 $127,820
December 31, 2011 $125,612
December 31, 2012 $152,463
December 31, 2013 $195,834
December 31, 2014 $223,910
November 1, 2015 $237,866
Isn’t that a more sane way of looking at your long term investments?
By Brad Brain, CFP, R.F.P., CLU, CH.F.C., FCSI
Posted November 12, 2015