Great Summer Memories
What does the closure of summer mean to you?
Is it the feeling of some coolness in the morning air while the days are getting shorter? What childhood memories does it evoke for you? The end of running around outside and the dreaded return to school? Maybe you were excited to go back to school to learn, spend time with your friends, and start fall sports? It could be something else altogether, and as the change of seasons and the end of summer remind us of the past, how could these memories guide us into the future?
Markets keep changing rapidly on a daily basis given the economic backdrop, so what changes will you make to your finances? What review will you conduct?
Predict or Prepare?
During summer break, you may be asking yourself, where will markets be by the end of the year? I don’t know. Nor does anyone else. The world is unpredictable and volatile. There are large events, such as panics, wars, bubbles, and pandemics, and they all have a disproportionate impact on the outcome.
To handle the world we can predict or prepare. Prediction is tempting and it’s been done throughout human history and expert predictions about markets, inflation, and global finance are seldom correct.
It’s better to prepare than predict. The summer is a slower time, and what better time to start preparing? It’s better to seek out situations that you expect to have good odds and offer you opportunities. For example, attending a party where there are a lot of people that you want to meet are in attendance. You aren’t guaranteed to meet these people, but you give yourself the opportunity to do so.
The worst thing that can happen is nothing. However, if you sit at home and scroll on your phone, you’ll never meet these people. By going to the party you improve your odds of this opportunity.
What can you do during summer break to improve your financial odds? Perhaps you can understand what’s really in your portfolio, maximize your employer benefits, or understand and implement a plan on the unlimited list of acronyms for equity compensation choices (ISOs, NSOs, RSUs, and ESPPs). Other suggestions include reducing your taxes, or helping your kids.
If you want to lament the end of summer or have a free consultation about improving your odds, let me know. Summer might almost be over but it is not too late to regain control of your finances.