When you hear sirens and see an emergency vehicle speed past, it’s likely on its way to respond to an accident. These heroes head to the fire or the car wreck to help people. First responders deserve our thanks for their bravery and unwavering duty to help those in need. Yet when not fighting fires or saving lives, these same men and women spend countless hours educating us on how to prevent these accidents. They teach our children how to”stop, drop and roll”, remind us to change the batteries in our smoke detectors, and gently remind us to obey traffic laws by writing tickets if we run red lights. They are dedicated to preventing disaster to reduce damage and save lives.
You may wear your seat belt and look both ways before you cross the street, but do you exercise the same behavior when it comes to your finances?
Here are some questions to ponder as you reflect on your financial situation:
If you had a financial emergency, who would you call?
Do you have an advisor that you could call to help you if you had an unforeseen event, such as a job loss, or significant loss to your portfolio?
Do you focus on preventing financial risk?
Do you have someone who proactively counsels you on how to prevent devastating financial problems?
Has that someone called you (not taken your call) in the past year to address what would happen if things went haywire in the markets?
If you are contemplating retirement in the next five years, do you have a plan to help you get there?
Financial markets move in cycles. Investors have consistently shown their inability to make the right investment decisions when things get messy in the financial markets. They want to buy stocks when they are at their highest and sell them when they are at their lowest.
Our family has a plan to get out of our house if the smoke detectors go off. Do you have the same plan in effect for your portfolio?