Investing is like boarding a long-haul flight to financial freedom. You take-off smoothly and soar high, but inevitably along the way, you will experience market turbulence as your balances fluctuate.
There is a lot to be learnt from pilots who are experts in navigating turbulence. It is helpful to consider yourself a passenger in your investment journey and take the same steps you would do on an actual flight.
Prepare for a long ride. Like any far-flung destination, long-term investing is just that; long-term. So, make sure you have enough to keep you occupied so you can enjoy the journey.
Ignore the noise. You know that constant hum of the plane? The media emits the same noise of market crashes, rising inflation and recession. That din will always be there but just as you seem to effortlessly drown it out on the plane, you, you should do the same when it comes to the media and your investments.
Don’t focus on the map. Constantly looking at the map in front of you to see where you are in your journey will not help you get there faster and is rather boring and unnecessary. The pilot will keep you informed of any updates and report on progress as necessary as will your financial planner.
Expect some turbulence. It can be hard to escape that uneasy feeling in the pit of your stomach when turbulence hits and the same happens when the stock market suddenly slumps. As the decline continues, you start wondering how long it will last. Fear kicks in; will you recover? what if the investment completely nose-dives and hits rock bottom?
These irrational thoughts can cause panic attacks and anxiety. But before you reach for the sick bag listen to the calm reassuring voice of your pilot who - like a financial planner - has piloted many journeys and experienced turbulence on all of them. Why? Because fluctuating conditions come with the territory.
Just as the pilot is not immediately preparing for an emergency landing, so should you hold your nerve and wait for the turbulence to pass (maybe distracting yourself with a stiff drink)
Stick to the flight plan. Being re-routed is incredibly annoying because you know changing direction mid-flight won’t necessarily help avoid the turbulence but it will take you completely off course and set you back in your journey. And lastly…
Trust the pilot to make clear, informed and rational decisions until the storms have passed. Deciding to go it alone is like pressing the ejector button and hoping the parachute opens in time. While the conditions may be bumpy, the turbulence will cease, the tailwind will kick in and you’ll be back on schedule.
Your Financial Adviser is the Pilot in Your Investment Journey
As with every journey, the ride may be bumpy and you may not be able to see through the fog. But just like a pilot, the reassuring voice, fortitude, experience and planning, a financial adviser will help you reach your destination safely.
Let us help you set the course and manoeuvre through the headwinds while you sit back, relax and enjoy the ride.
Call us on 08 9445 2955