Happy Monday:
I trust you enjoyed something worthwhile over the weekend! How did you celebrate your life? With family, friends, or doing something that makes you sing? I’d be most interested to hear from you, and how you spend your downtime.
As for me, I spent some time enjoying family and friends, in the midst of the Seattle Seafair festivities. Our house sits atop a hill overlooking Lake Washington, with a perfect view of the Blue Angels and hydroplane races. As the Blue Angels fly overhead, the earth below our house shakes, and the noise is incomparable. While spectacular, I find great relief after the final fly-by. As a child, and young adult, Seafair captivated me in a way I can hardly relate to today. What captivates me, now, is quietude. The question is, “How does anyone achieve that state in such a noisy world?”
As a tennis coach, it always fascinated me, how some of my hard-working clients progressed rapidly, and others got “stuck,” in spite of their tremendous potential. They were actually trying too hard, rather than letting themselves trust their muscle memory. The “noise” in their brain was actually inhibiting their ability to improve. Instead of being able to use a mantra and a special formula for their own personal style, they would spend thousands of dollars going to different tennis pros, attending camps, reading articles, and cluttering their minds.
Later in my career, I was able to facilitate the process of quietude in their game , so that they could get out of their own way , play the game more effectively, and enjoy it more.
The same issues present themselves for each of us, when it comes to money matters. We all ask questions, such as, “Which vehicle should be used to fund my retirement-a 401K, SEP IRA, Simple IRA, Roth IRA, or Traditional IRA. And, who, by the way, is IRA, anyway? After someone determines the proper vehicle for his or her situation, what investments would be best? The latest stocks touted by the talking heads on television? The stocks touted by friends at the neighborhood barbeque? The ETF or Mutual Funds that a family member is touting? What about annuities? What about bonds-are they something to be considered? Noise, noise, and more noise.
In order to reduce the noise around money and investments, we need a simple “quiet,” and individual approach that works for each one of us. If we can do it ourselves in a way that maximizes long term returns, and reduces taxes and fees, we should pat ourselves on the back.
For some of us, we can benefit from the assistance – either a long-term relationship with professional financial advisor, or with a one-time financial plan – to get us started on the right path.
In choosing a path that is best for us, it is critical that we have confidence in our decisions, becuase sticking to a plan in bull and bear markets, amid all the noise of Wall Street, is essential to our investment success. Regardless of which path we choose, it is important to review the plan periodically, as life situations continue to change. Just as I called my approach to tennis, “Zen tennis,” a “Zen” approach to money works well, too.
Are you putting some “Zen” into your finances? Fill us in on what works for you – We will send a book to the first three Coffeehouse Investors who repsond back – Have a great day!
Lori