I believe one of my greatest
responsibilities is to help my clients avoid extremes. It seems like
there is a lot of “extreme” talk right now. I hear it everywhere.
Regarding politics, this is either the worst time in American history
(if you are a conservative) or this is the beginning of a new era of
Enlightenment (if you are liberal). I hear it with sports as well.
How many people said the last Super Bowl between the Saints and Colts
was the best Super Bowl ever? How many times did you hear reporters
ask Coach K if he thought this year’s Duke team was the best ever? How
many people are already comparing LeBron James to the all-time greats
of NBA history? On the other hand, how many people would watch
“Makeover: Home Edition?”
The reason why I say this is to show you how all this “extreme” talk
effects people’s view of their finances. When people believe the
investments they own will either go to one extreme or the other, then
they will make an irrational decision not based on the facts, but
based on fear or foolishness. It is my job and the job of any
Financial Advisor worth the fee you pay him to help you avoid the
“extremes” regarding your financial life and financial decisions. It
is okay to be concerned about the future of the economy and to invest
more conservatively or to feel a need to invest more aggressively
because you think the market will go up. However, it is not okay to go
extreme! The saying is true: Do not put all your eggs in one basket.
The basket is your emotions and it is important to know the facts and
to make decisions based on facts, not the latest idea conjured up by
the talking head on TV or the “guru” you read about in the paper.
If you are looking for financial guidance, I encourage you to seek
out a Financial Advisor that can help keep you from making “extreme”
decisions about your money. You do not want a “yes-man” who is only
looking out for themselves but rather, you need to look for an advisor
that will keep you and your emotions in mind, so you do not make
inappropriate long-term financial decisions.