Excuses, Excuses

We all make excuses.  We make excuses for not getting enough exercise, for not going to the dentist, for not calling our mother.  The list goes on.  As a financial planner, I’ve heard a lot of excuses about money, and I know we tend to fool ourselves when it comes to our own money.  So here’s a list that I’ve come up with that David Letterman might call:

“The Top Ten Excuses for Not Seeing a Financial Planner”

  1. I just want to wait until the markets clear.” 

Volatile markets are opportunities….   It’s understandable to feel unnerved by volatile markets. But volatile markets are opportunities:  opportunities to get in and opportunities to get out. Waiting for volatility to “clear” before getting in can result in lost opportunity.  That is, you miss out on the return that might accompany the risk.  Consider this.  Since spring of 2009, we’ve been experiencing “upside volatility”.  The market has more than doubled during that time period (and sometimes it didn’t feel so good). This is the bull market that no one seemed to love!  But love it or not, it’s often too late to jump back into the market when we are comfortable.  That’s why you have a professional look at your portfolio.

In the next blog I’ll discuss excuse number two for not seeing a financial planner:  “I don’t like risk.”