Monday, October 29, 2012

Patience



One Size Fits All?

Often I’m asked about our investment results for the last year. It’s a reasonable question on the surface but betrays a misunderstanding of investing and personal finance. Unless results are disastrous or too good to be true, you can’t tell much in a year or even a few years.

Each of our clients has a different portfolio and thus different results. Would you outfit all of your friends with size 8 black shoes regardless of their foot size, taste and budget?

For most people, a home is one of their biggest investments. They may live in the house for 20 years or more. Over that time generally --- until the recent unpleasantness – house prices rose. Sometimes prices rose quickly but more often they rose in fits and starts with occasional drops. Long-time homeowners accumulate wealth patiently and while using the house for their family’s daily life, only dimly aware of market fluctuations.

But with the stock market, where prices change continually, people focus on quick results. That impatience isn’t benign; it causes much misery.  Inspect the soup ingredients and the recipe but let it simmer. Don’t yank it off the stove at the first pleasant whiff.

Wednesday, October 24, 2012

Financial Literacy Day

Financial Education Day at Pace University

The Financial Planning Association of the Greater Hudson Valley is co-sponsoring a Financial Literacy Day at Pace University on November 17. This is a free event with 15 workshops on important personal finance topics and a keynote appearance by Willie Geist of MSNBC's Morning Joe and Kiran Chetry of CNN. I will be speaking on Social Security strategies and participating in a panel discussion on planning a comfortable retirement.http://appsrv.pace.edu/pclc/fed/workshops---seminars.html#sessionone