With both the knowns and the unknowns of COVID-19, the elections in five short days, elements of discord in U.S. society and across the globe, we can all feel that our futures are a bit foggy. A sense of apprehension and concern about the days to come is completely natural and understandable.
Although natural and understandable it is sometimes difficult to address. That difficulty stems from the fact that the “fogginess” can apply to a wide range of life experiences including our financial circumstances.
Patience is an important quality and is often an underused financial investment skill. Even if we are patient in some other aspects of our lives, learning to also apply patience to our financial “fogginess”, can help us attain our goals. Remembering some simple maxims may help us practice financial patience:
Have a plan and think long term. Set long-term financial goals and keep them front of mind during volatile times.
Understand that market volatility is normal. Recognizing that we will encounter volatile markets from time to time due to circumstances beyond our control can help prepare for market corrections and downturns.
Avoid fear-based mistakes. Be patient and stick to an investment strategy to help avoid emotional decision-making errors.
Remember, time is on your side. Take solace in the long history of the economy. Historically, markets go up far more often and by a much greater margin than they go down.
Just like the phenomenon captured in this photo I recently shot; the sunrise will break through the fog. One key is to remain patient and hopeful in aspects of our lives, including our financial goals.
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Cody Sims, CRPC, AAMS, AWM is a financial advisor and franchise owner of An Ameriprise Platinum Financial Services practice