| Working with people and their money has lead me to | | | | lower cost is the perfect part of that phase. You also |
| great insight as to how one thinks when encountering | | | | could be in the payout part of the plan, and then |
| difficult situations. A tough Economy qualifies as one | | | | income is the most important part of your asset, and |
| such difficult time. The 3 Critical Concepts to master to | | | | not returns. But, you must look at what is Real and |
| "come out on top" are as follows: | | | | what is Not Real. Too often we tend to follow what |
| | | | the media says, or our neighbor (who is a part time |
| 1. Have a good plan. Many times we as individuals feel | | | | worker making minimum wage), or some other entities |
| as if we can "play it by ear" or "just go with it", | | | | view. You must look at the whole picture, not what |
| sometimes you can, but in tough times you better | | | | sells newspapers, magazines, or radio spots. Fear sells |
| have a great plan. Making your money work, and work | | | | those items, you are working a plan. Analyze what is |
| for you, requires a good strategy. Realizing what you | | | | real, not what is fear. If everyone is selling, buy. If |
| were hoping to achieve, when you want all or part of | | | | everyone is buying, sell. Be prepared to swim against |
| your money back, what investments fit for what time | | | | the tide, and know what works for you in the long run. |
| frames, and how the choices you make impact the | | | | Base your decisions on facts, not on emotions. This is |
| overall picture are a few of the thoughts and ideas | | | | the real value of an advisor; they can look objectively |
| that must go into your plan. The plan should also be | | | | and not emotionally on the current situation. |
| written, or at least analyzed by some unbiased third | | | | 3. Make small adjustments, but stick to the Plan. When |
| party. That means, have a friend, advisor, spouse, | | | | reviewing your strategy and investments look at the |
| business partner, look over the plan to make sure it is | | | | data, but stick to the plan. If a money manager |
| feasible. The person may not understand investments, | | | | changed, you may want to change the investment, but |
| but should have a good idea if it all makes sense. The | | | | stay in the same asset class. Realize there should be |
| person (and you) should know your style and how | | | | minor changes, not huge swings. In preparing your plan |
| much risk you want to take. A good plan must be right | | | | you knew the times were going to change and be |
| for you, no one else. It is your money, and your lifestyle, | | | | tough, look at track records, keep emotion out, and |
| it must fit you! | | | | follow your plan. Develop a long term perspective, that |
| 2. Analyze what is real and what is Not Real. Once | | | | doesn't necessarily mean long term investments, just |
| the plan is in motion you must track progress and look | | | | try and think of what your life may look like longer than |
| at your benchmarks. Too often people will assume | | | | a few weeks or months out. The longer you can view, |
| that the return for that particular year is the only thing | | | | the less hard tough times will look. |
| that matters. Not True. You may be in the | | | | By working these 3 steps you too will be well on your |
| accumulation part of your plan, and acquiring more at a | | | | way to creating a life you want to live! |