What We Learned in 2018
“Life is best lived deeply and we have a tremendous amount for which to be grateful.”
2018... What I learned:
Deadlines create activity
I June I committed to write a weekly email to the members of the RIM Family. This is something I had been wanting to do for a while but once I started and built a rhythm it started to get done each week.
You guys are paying attention
This is perhaps my favorite lesson of 2018. As written about numerous times here the market has been pitching a fit this last quarter. Up until September we were walking on ridges. Then all that changed. As I have spoken with you on the phone, in person or over email the consistent response is “we are taking the long view.” HELL YEAH. Michael Batnick, Director of Research for Ritholtz Wealth Management wrote recently about the proper reaction to the recent market activity.
“When stocks fall 20%, investors start asking questions. This demand is met with an endless supply of people happy to provide them with answers.
There will be no shortage of people claiming that they nailed the past and can help you navigate the future. Not everyone is a charlatan, I know some full-time traders who I respect that were very vocal about the downside risks. However, it’s important not confuse other people’s objectives with your own. Professional traders should be in cash, the average investor who’s saving for retirement most definitely should not.”
https://theirrelevantinvestor.com/2018/12/25/dont-fall-for-it/
Keep taking the long view and thank you for paying attention.
My kids aren’t getting younger and neither are yours!
This year I did something I have never done before. I set up a home office. Kara went back to work full time as a teacher, so I am helping with pick up and drop off at school each day. It's amazing to see their progression over the days and weeks.
Two things that stick out to me.
Since our time grows shorter, it's important to focus on the goals we have for them and specifically what we are saving for. Whether it’s a wedding or college, starting early and saving often make achieving those goals a lot easier.
The average college graduate leaves school with roughly $37,000 student loans. The average wedding in America is $35,000.
Even saving a little bit at a time can add up over time. You will be amazed when you look back over a span of time how much it adds up. START NOW!
The world is getting smaller and that’s a good thing
I often think about how much the advisory business has changed even in the short span of 12 years I have been practicing mostly due to Technology.
Running a successful firm used to require a large building with staff, assistants and tremendous overhead. While that hasn’t completely gone away it has been diminished.
To network with other advisors used to mean joining a local networking group, travel to conferences, or work at a large firm.
Each time my family travels I try to connect with an advisor in the town we go to. How is this connection made? Twitter or Facebook. It’s great to learn about other practices and not be limited by zip codes and Distribution Channels.
This past year I have spent time with advisors in Nashville, Winston Salem, Raleigh, Philadelphia, Cincinnati and Washington DC. Each with a different perspective.
As always thank you for your support. I look forward to seeing what 2019 Brings.
Have a great weekend and TAKE THE LONG VIEW!
– PK