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How to Reach Your Financial Goals

How to Reach Your Financial Goals

July 24, 2020

Statistics show that investors are more likely to meet their goals if they have a long-term plan and avoid short-term, and often emotionally driven, reactions that cause them to swerve from the course. With 2020 now more than halfway behind us, market volatility and the headlines have caused even the most stoic investor to re-think their positions.

As a Certified Financial Planner for over 20 years, I have always been focused on asking the right questions and advising clients on making a long term plan that they are comfortable with implementing. Recently, I ran across an article from PIMCO, leading global investment management firm. 1 They shared a chart along with the following introduction to the chart which can help investors visualize the importance of riding the ups and downs of the market to achieve the best outcome. 1

As this hypothetical example shows, investors may make sub-optimal decisions when emotions take over, tending to buy out of excitement when the market is going up and sell out of fear when the market is falling. Markets do ultimately normalize, and when they do, those who stay invested may benefit more than those who don’t.

To help reason prevail, first make sure you’re comfortable with your allocation to riskier assets and that it makes sense in light of your time horizon. You also need a logical framework for financial decisions and a plan that anticipates periods of market turbulence. A systematic approach for reviewing portfolio results, with pre-established guidelines for selling, may help as well.

       Behavioral Science of Investing

If you have found yourself thinking about or even making some emotionally based short term decisions, you may need to speak with me.

Schedule a time to review your financial positions today and take advantage of having a CFP® as a sounding board on your side to help you make the right money decisions for you and your family.


  1., 2018