So, I am going to do something different again this month, and next month too, with these Edu-Blogs. This time, I am going to do a two-month blog topic series with a total of eight blogs. Why do that? Because this topic is truly that important, and here’s what it is: Preparing for what can go wrong so you can take advantage of what goes right.
That’s right; we are going to be talking about the paradox inherent to life, the old double-edged sword, from a personal finance and investing perspective. We know that life never goes as planned; unexpected things happen, and they can derail us and our finances in an instant and lead to more than a very bad day. But what if you had the time and mental fortitude to get the jump on those little black storm clouds? Well, then those things, if they even happen, will hopefully and most likely be a lot less difficult, right?
This month, we are going to talk about being prepared for those things ahead of time, so you and your money can do more and invest for what can go right. And in October, we will talk about investing for what can go right.
I want you to think for a moment about what you might do if you had no concerns about your financial stability or your ability to be able to handle a large unexpected expense. I’m not saying you are using hundred-dollar bills instead of firewood in the winter for this exercise. Instead, I am talking about having the mindset of preparedness. Feels pretty good, right?
Now I want you to think about some of the things that can go wrong unexpectedly in life. I’ll give you a hint or two. How about death, disability, accidents, lawsuits, or health issues? Those are some heavy topics, but they don’t need to be if you are prepared. Don’t get me wrong; they will still be awful; I can’t fix that, but I can teach you how to prepare so that financial loss won’t be part of the equation.
I encourage you to tune in next week when we will start talking about each of these potential negative life events and specific actions you can take to be financially ready if they happen to you.
Until next time…
One last thought, I believe an educated investor is an empowered investor. If you like what you’ve read and think your friends and family can benefit as well, please share.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and does not protect against loss in declining markets.