ZOOM OUT!

ZOOM OUT!

Remember the importance of zooming out when reviewing your financial statements in the most recent months (and any month for that matter). We like to say at Red Oak Financial that "short term volatility is the price you pay for long term gains."

We just had a phone call with a client who was concerned about the drawdown in her account over the last month because it was significant to her. After going over her concerns and goals for the account, we reminded the person that if you just zoom out for a second, you will be surprised by what you see. What she discovered was that at the end of 2020 her balance was far below where it lies today in March of 2022. Looking at YE 2019, the balance of her account was materially below today's "volatile" value. When we pointed this out to her, she felt much better about her situation, almost as if a weight had been lifted off her shoulders, as she felt she was doing the wrong things. She was happy to learn that she in fact is doing the right things, in staying the course and not making rash decisions based on day to day or week to week news stories and events. This is a reminder that investing is a long term game, and the short term future is very uncertain. However, if you take a deep breath and step back for a second, you might be pleasantly surprised by the gains you have harvested over the last 2 years.

Timing the market is nearly impossible. Create a plan with your advisor that works for you and your long term goals (or short term goals) and stick to the plan. If you find yourself sweating the latest weeks or months, try ZOOMING OUT a few years and take another peak. You may just feel a little better. #zoomout #longterminvesting #financegoals #towson #wealthtipwednesday

Consult your financial professional for more information.

-Your Friends at Red Oak Financial Group