The number one question I hear from people is “What do you think is going to happen in the financial markets?”
Although, I am not a fortune teller and cannot predict with certainty the future of the financial markets (no one can), I am able to tell you however; that as I read through research, articles, books, news stories, and commentaries the answer is two-fold.
First, the future looks ugly. The good news is that looks can be deceiving. It’s only natural to abstain from those things that are unpleasant in appearance. Yet, I urge you to consider the age-old motto, which states “Don’t judge a book by its cover!”
Just because the appearance of the future financial markets looks grim, the reality is that you have a story written in its pages. It consists of your investments, your 401(k), your home, car, and credit cards. These things are part of your legacy and fortunately, it’s not too late to shape its development in the months ahead.
Secondly, you need to have a protection plan.
How do you know if you have a protection plan? Ask. If you have a strong relationship with your financial adviser this may come easily to you. In essence, asking the powerful question, “What is my protection plan?” will move you into a great territory of gaining the understanding you need to make smart choices with your money.
If you find that your answer is met with uncertainty or you discover that do not have a protection plan in place, then now might be the time to start looking for someone who would work towards creating such plan!
Knowledge is Power.
So, this is where you get to step in and play an active part. It’s easy! To guide you though, over the next couple weeks, I will summarize a few simple action points to get you started in the right direction. My goal is to help you understand the things you own so you can make empowered decisions for your future.
This week, take 10 minutes and do the following:
Take Inventory. Grab a sheet of paper (or jump on the computer) and write down the following:
- Type of Investment Accounts you have (i.e. Roth IRA, IRA, 401K, Pension, etc…)
- Put a box around each listed account. Now, go through your statements and list what investment is inside each of the accounts.
- Next, jot down whether its source is from the stock market, bond market or cash/money market
Question: Do you have a specific question about the financial markets? Send me a message to inquire at firstname.lastname@example.org or comment below.