There is an element of luck involved in investing. A specific term for this luck is, “Sequence of Returns.” What on earth is that? Answer: it is a risk. And it may just be the most important concept in the world if you ever wish to spend your savings – and have them last as long as you need.
Over what will undoubtedly be a most unusual Memorial Day weekend the possible topics of conversation will be endless. Everything is fair game this year – especially politics (and maybe sex and religion too). Also high on the list will likely be:
what is proper social distancing
kids’ drive-by graduation celebrations
how many Zoom cocktail hours were held in the past 8-10 weeks.
If anything has been important since mid-February 2020 it has been being mentally strong and resilient – or having friends and family who are mentally strong to lean on. Believe it or not, this has nearly always been the case with investing.
DISCLAIMER: THIS IS EASIER SAID THAN DONE!
A recent article in The Wall Street Journal alluded to the concepts of mental strength, resilience – and process – amidst the coronavirus.
Now that the calendar has turned from April to May there will be in effect a “Tax Time Groundhog Day” on July 15th, which is the new 2019 Federal (and most States*) filing deadline for 2019 taxes.
A number of people reading this note may already have signed and filed their 2019 tax returns^ in order to turn the page and move on to 2020 spending, budgeting and saving. However, if you are in the camp that is stretching out your 2019 filing until the July 15th date, then consider a few last-minute items:
How many times in the past going on 10 weeks has someone said to you, “Hang in there”? How many times have YOU perhaps said to someone you care about, “Hang in there”?
Hanging in there is often all we can do – and a brave thing to do at that. When it comes to tough markets like the ones we are currently experiencing, “hanging in there” translates to discipline in the midst of bravery. Discipline and bravery are two of the ultimate challenges in life.
Originally titled, “Practical Suggestions, part 2” this edition of TGIF 2 Minutes covers a topic more related to “Is This Time Different?”
Related to a specific situation or event, most everyone has heard the bold acclamation, “This time is different!” Then, there are those who firmly believe that times are NEVER different… and that time simply repeats itself but with different nuances.
Looking at today, who is correct? The past 12 years are evidence of BOTH.