What's Your Investing Lifetime? - J.E. Wilson Advisors

What’s Your Investing Lifetime?

“Far more money has been lost by investors preparing for corrections or trying to anticipate corrections than has been lost in corrections themselves.” – Peter Lynch (Former Fidelity Magellan Manager)

We sometimes see clients that have an investing theory all worked out that inevitably leads to a coming market decline.  Financial markets indeed move up and they move down. This has always been so. Despite what some might think, however, the markets over time have proven resilient against “news and noise.”

Contingency Planning

What occurs in the markets during the short term cannot be predicted. The good news is, we don’t believe that you have to predict where markets are going in order to “win” at investing over the long term. All of our emphasis is on the long term, what is sometimes called “an investing lifetime”. This ties directly into financial planning. Financial planning is contingency planning and the contingency is if we will be here for “days or decades”. That too is unknowable, so we must plan for the “decades”.

Invest for a lifetime and towards lifetime goals (on purpose, for a purpose). This will reduce the anxiety that you carry around when you invest only for very short-term objectives. You see, we know what real, adjusted for inflation returns are over the long term. We have almost 90 years of market data that provides an excellent guideline. We also know that investors receive long-term premium returns precisely because they are willing to accept some level of uncertainty about what might happen in the short term.

If we can let go of the destructive notion that somebody, somewhere has the ability to anticipate what may happen in the short term, we will be re-paid handsomely over the long term…over our investing lifetime. Harness the power of the markets. Let them work for you, not against you.

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