Gary Haapala

Gary Haapala

We start every year with a renewed hope and optimism and a list of New Year resolutions.  Here is part of my list.

  1. Eat more vegetables
  2. Exercise 5 times a week
  3. Volunteer once a month

This list probably looks pretty familiar. Take a look around, more people are bringing their lunch filled with healthy food, and the gym and your church are packed full of people. Then BAM something happens. A bump in the road, like a Super Bowl party and healthy eating goes out the window. I am tired today and it is cold this morning, so I am just going to skip today’s workout. No worries, it’s just once, right? Unfortunately, it tends to be a slippery slope especially if I am trying to follow a new fad. Proven programs and discipline is the key.

This holds true for your financial resolution too. The financial fad today is “market timing.” Get in the stock market when it is low and get out just before it is going down. If you follow this program you will avoid ever having to see your investment portfolio lose value – or so they say. Then BAM something unexpected happens. Like the week ending January 22nd, the market drops over 5% in four days. I wonder how many “market timers” accurately predicated, and acted, before that happened. I submit not very many, probably none.

I suggest you stick to a proven financial program. One based on understanding your goal, time horizon, tolerance for risk, and diversification. I hear you, this program and discipline is boring and the fad is new and exciting. Just take a moment and take a look at your New Year resolutions. Where are you getting the consistent quality results?

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