The Tsunami Of Noise
Every single day each one of us is inundated and sometimes overwhelmed by the tsunami of noise from financial journalism. Most of it centers around timing of the market and the perfect selection of funds. The "experts" say things like "Big correction coming soon!" or "Here's the three next big technology stocks to jumpstart your portfolio!" and on and on and on. Twenty four hours a day we are literally bombarded with the information that journalists want us to hear. I hesitate to even call them journalists because most of them are actors pretending to be journalists, but that's another blog.
The thing is, they have to write or say something because there are so many hours of air time or pages in the next magazine or newspaper and they have to be filled with something. And if they told us the truth every day, we would quit watching out of boredom. How many times could I run a story on the importance of asset allocation before you got bored with it? These media outlets are always sponsored by the financial products they are pushing to you. They advertise on how many stars their rating has, how many celebrities endorse or use them, how their investments outperform their peers and other made up benchmarks.
All this misinformation ultimately affects the popular culture of investing and it tells the average investor that they can outperform the market and not only can they outperform the market but they must outperform the market to achieve their desired financial outcomes. I'm here to tell you that is an absolute lie.
Outperformance isn't a financial goal at all. If you outperform your neighbor's portfolio this year and next year but in 30 years he still has money to live in retirement comfortably and you don't, did your outperformance achieve your goal? Outperformance is something that can never be delivered consistently by any financial advisor or anyone for that matter.
Outcomes Over Outperformance
As a financial advisor that specializes in long term goal focused retirement planning, my value proposition is the achievement of desired financial outcomes in retirement by strategically and systematically investing in asset classes that are appropriate to my clients long term plan. I focus specifically on outcomes over outperformance. They are not the same thing. And the latter will never ensure the former.
A retirement plan requires a planner - not a performance chaser or the empty promises of an index beater. Plans, not returns, lead to successful retirement outcomes.
At 80/20 Financial we are retirement planners. We define your goals, we make a long term plan for achieving those goals and then, and only then, do we build a portfolio containing asset classes which have historically provided the long term returns that our plan requires.
We believe that true retirement planning is aligning your investments to achieve your retirement goals. We aren't interested in creating wealth quickly. We are interested in creating wealth for certain.
You Need A Plan
A goal of retiring - without a plan - is simply a plan to run out of money. At 80/20 Financial Services we specialize in helping cooperative employees plan their retirement. We can show you how to turn your 401k and your R&S lump sum into a stream of income just like when you were working while also helping you achieve your desired financial outcomes in retirement.
If you're age 50 or over and still in the accumulation phase (pre-retirement) we can help you figure out where you need to go and how to get there. If you are retired or nearing retirement, we can create a plan which will outpace inflation and accomplish any other retirement goals you might have.
The consultation is free and without obligation. Contact us to set up a consultation.
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80/20 Financial Services is an Independent Registered Investment Advisory Firm. We help Electric Cooperative Employees create their retirement income and investment plans.