A January Action Plan!

January 03, 2023

Years ago when I used to work out at the Durango Rec center every day, I’d get tickled at the beginning of January when the exercise equipment would be completely occupied- for about a month. 

Now I find that I’m one of the folks resolving to start a new regimen each January; fitness, nutrition, family time, personal and professional growth.  Improvements across the board! 

Our good intentions can clash with old habits.  Making permanent lifestyle changes is borderline heroic in our busy day and age.  Inertia is a powerful force.

It is that time of year to consider a few things.  We will be doing our year-end reviews, where we look back to see how things went in 2022 and how we’re positioned going forward.

While you received many communications from me reminding you of the temporary nature of bear markets and the many silver linings to be found, we can’t ignore that 2022 was the worst year for the financial markets since 2008.   

History and improving circumstances suggest that the worst is behind us, but it has been a great reminder why financial planning is the critical starting point for an investment strategy.

A helpful exercise in 2022 was to take a look at where you are currently and make sure you’re still on track to reach your goals.  The good news that I can’t overemphasize:  occasional bear markets are expected and accounted for in your long-term plan.

If we have created a comprehensive plan for you, pre or post retirement, we will revisit the plan to see if anything about your circumstances or goals have changed. 

We may stress test the plan for higher inflation, or a stretch of lower market returns.  We’ll see if your investment strategy is still appropriate for your time frame, goals, and risk tolerance.

If we have not yet created a comprehensive plan for your lifetime financial success, let’s not wait any longer! I’m here to help you. 

Cutting through all the economic outlooks, constant news babble, and market clickbait, here is the most important action plan for 2023 I have to present; a recommitment to the general principles of financial planning and successful investing:

  • You and I are long-term, goal-focused, plan-driven investors. We believe that lifetime investment success comes from acting continuously on our plan.  Likewise, we believe that substandard returns, and even investment failure, comes from reacting to current events.
  • As the last three years have conclusively demonstrated, the economy can never be consistently forecast nor the market consistently timed.
  • Therefore, we believe the most reliable way to capture the full returns of your investment strategy is to ride out the frequent but historically always temporary declines.
  • These convictions are the basis for our investment policy as we pursue your most important financial goals together.

Cherie and I will be reaching out to schedule reviews throughout the coming months, but please feel free to reach out if you’d like to get on the schedule.  I look forward to seeing you soon!

Principles of planning and investing by Nick Murray

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Investing involves risk, including possible loss of principal. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio.  Diversification does not protect against market risk.

Securities and Retirement Plan Consulting Program services offered through LPL Financial, a Registered Investment Advisor. Member FINRA/SIPC. Investment Advice offered through Western Wealth Management LLC, a Registered Investment Advisor. LPL Financial, Kennebec Wealth Management LLC and Western Wealth Management LLC are separate entities.