I believe in a strategy - a plan - that starts with your goals and time horizons. Planners and investment advisers cannot predict where the markets are going. If they could, they would be financial forecasters.
If your adviser recommended that you move to cash in any time other than early October 2007, that adviser is reacting and not being proactive. You might say that getting out anytime in 2008 was at least a reasonable safeguard. Was it?
March 9, 2009 appears to be a low but only time will tell.
Buy and hold is not a strategy that no longer applies since the alternative is market-timing and that does not consistently work. Did your adviser predict the past six months of activity? How many years of cash returns would be needed to return 45% or more as the past six months have done? Will this all evaporate in the months ahead? No one knows. You must know your own, personal time frame for income needs (or principal protection) from your investments. That is essential.
Dan Moisand, former president of the FPA (Financial Planning Association), said it best recently: "...planning is far more preparing than predicting..."
The preparing involves understanding what you are saving/investing for and having the capacity to be patient during difficult times by having "years of safety" set aside. Remember, in retirement, you may not need all of your money all at once - only a portion - and insurance should be owned to cover that possible catastrophe.
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.