We All Do It

Hello,

The things we worry about often aren’t even a concern a short while later. There are so many things to worry about these days. With the ever-present Internet allowing us to Google the finer details on any topic, the tendency to worry can become overwhelming.

I woke up Tuesday morning to learn about the Baltimore Bridge collapsing overnight. After watching the video of the boat going under the bridge a couple times, you can probably imagine what my next thought was… “The next time I’m driving over a big bridge I’ll be looking both ways and getting off that bridge as quickly as possible!” Great, another thing to worry about. Picture BBC

Maybe you were like us if you have kids. I never realized how quiet our house was before we had kids. Apparently, we didn’t talk very much after Amelia was born, then a couple years later Covid happened and we stayed home a lot that year.

So, naturally it took Amelia a little longer to begin talking. We talked about it and were probably overly worried. If you saw her today, though, you’d quickly find out she’s never met a stranger. She could talk the ears off a brass billy goat as the saying goes. We’d spent time worrying about a non-issue.

I was reminded of this last weekend when Amelia was cruising around in the toy Jeep her grandparents bought. When she first tried it a couple years ago, she was afraid to drive it despite our assurance she wouldn’t get hurt.

On Sunday she had a wonderful time driving around the yard with her sister like a professional driver! Again, I had worried about a non-issue.

It reminds me of a verse we’ve been helping Amelia memorize (that we’re really memorizing for me) in Philippians that says, “Do not be anxious about anything, but in everything by prayer and supplication with thanksgiving let your requests be known to God.” The next verse is the reason why we should do this.

We do this with our finances also. Of course, some people should be worried about their money, but my guess is if you’re reading this newsletter that’s probably not you.

If you’re like most of our clients you’ve been prudent and saved for retirement. You’ve made wise decisions along your journey, and in retirement you can reap the rewards of being a good steward.

Yet, it’s easy to get caught up in the day-to-day about how our accounts are performing and what’s going to happen because of the upcoming election. We focus on the here and now, and sometimes we forget the long term.

Historically, the market has gone up over time (as we can see above with the chart of the S&P 500) and we intellectually know it’s better to judge investing performance over 5- or 10-year time increments rather than year-to-year. Of course, we want to be properly allocated. Only then can we be confident that we can wait for the 5- or 10-year results. The point is that nobody controls the market outside of our elected and appointed officials, and if we have made the best decisions we can with the information we have, our goal should be to let the plan work itself out.

The danger of making decisions based on the short term is there is a high likelihood of being wrong, because we are essentially trying to time the market. When we are timing the market we have to be right twice. We have to know when to make a move in or out, and vise versa. This is difficult for anyone to consistently do.

I’m not saying we should ignore how we are feeling about our life savings, but I am saying we should figure out why we are feeling worried if we are. Then we should take steps to create a financial plan that allows us to have more peace of mind. Then we should practice not worrying.

Until next week,

David C. Treece,

Financial Planner

864.641.7955

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Clients Excel, LLC is an independent financial services firm that utilizes a variety of investment and insurance products. Investment advisory services offered only by duly registered individuals through Creative One Wealth. Creative One Wealth and Clients Excel, LLC are not affiliated companies. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified tax professional for guidance before making any purchasing decisions. Clients Excel, LLC is not affiliated with or endorsed by the U.S. Government or any governmental agency. Clients Excel, LLC has a strategic partnership with tax professionals and attorneys who can provide tax and/or legal advice. Published on 03.2.2024.