Q: I was recently diagnosed with an anxiety disorder. My doctor advised me to find a way to relieve stress. I manage my finances and read and watch the news as much as possible, but I get anxious when there are too many different predictions. My goal is to have a financial plan that is child independent. Any advice?
A: You’re in good company because anxiety disorders are common and money is often a big source of stress, usually outweighed only by health issues.
Bad news rules the media, and its revenue comes from advertising and subscription sales. A cable news channel has a host who gives financial advice and once directed a Jerry Springer show. It can be fun, but it’s not always a good predictor of economic cycles and financial markets.
Change is often top 10 on many people’s “worry lists” and our world is changing faster than ever. Consider the pace of artificial intelligence (AI) technology and the controversy surrounding it.
Topping the list of financial worries is lack of money in retirement. Controllable factors are investing in the right mix of stocks, bonds, real estate, and other assets based on your risk tolerance and time horizon. The uncontrollable factor is the state of the world.
You sought medical advice when you recently fell ill, so consider working with a personal financial advisor who will create a comprehensive financial plan for you. Choose someone you can trust and trust. Find an experienced, independent, confidential and qualified professional to solve all your financial problems.
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People often worry about losing money on their investments. Price fluctuations do not mean losses. loss or profit noticed, To lock in a profit or loss, you must sell your investment. The aim is not to sell when the market goes down.
It’s natural to worry about making poor financial decisions. Understand your investment or product. Does it sound too good to be true?Maintain investment mainstream with publicly traded liquid diversified funds what is regulatedPrivate placements are typically not liquid. Insurance products are often opaque and charge high fees. Hedge funds are often leveraged, which means higher risk.
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Recent events have led Federal Reserve officials to create a new team of cryptocurrency experts to review unregulated stablecoins. It’s safer to hold a regulated, transparent, liquid and cheap investment. Expensive investments often yield lower returns.
Many of us worry about global uncertainty and recession. There are always reasons not to invest. Fun fact: If he invested $10,000 in a low-cost total stock market fund on the day of Pearl Harbor, ten years later he would have about $37,000 in balance. The same $10,000 investment he made on 9/11 would be about $59,000 in 20 years. timeline is important.
Large-cap stocks (Wilshire US 2500 Large Cap index) rose 7.4%, while the tech stock index (Nasdaq) closed the quarter up 16.8%. There is great hope that interest rates on money market funds have exceeded his 4% for the first time in over a decade, but we also know that inflation is eroding purchasing power. Our money buys less. Combining different asset classes provides returns that can hedge against inflation.
Anxiety may be eliminated with unbiased guidance. You feel better when you have a clear path to achieving your long-term financial goals. We hope your financial plan relieves your stress and improves your health.
Mary Baldwin (CFP®) is a commission-only financial planner at Buckingham Strategic Wealth in Indian Harbor Beach. Contact her at 321-428-4555 or her mbaldwin@buckinghamgroup.com.
For informational and educational purposes only. Individuals should consult a qualified financial professional based on their circumstances to determine if the above is appropriate. The opinions expressed by the noted authors are their own and may not accurately reflect the opinions of Buckingham Strategic his Wells.
