Why Investors Should Join This Dance

Note: This article is courtesy of Iris.xyz

By Ross Levin

Everywhere I turn today, people are expressing concern about world affairs. Elections always create uncertainty, but combined with terrorism, changes in climate and a host of other issues, things are feeling out of control. And they are. But guess what — things are always out of control.

In the book “The Wisdom of Insecurity,” Alan W. Watts, writing in 1951, says: “The only way to make sense out of change is to plunge into it, move with it and join the dance.”

We can wish for the world to stand still, but the earth rotates and our lives spin with it. So rather than trying to ensure security, maybe we should immerse ourselves in change.

Some clients come in with regularly updated, detailed balance sheets. When the numbers drop, they feel bad. When they rise, they feel good. While their financial security did not change, their perception of it did.

When we run retirement-planning models for clients we use thousands of iterations, some drawing on markets that none of us has experienced and use a spending rate that can survive these gyrations. Yet when clients feel poor, they tend to spend less — regardless of the permission the models give them.

Click here to read the full story on Iris.xyz.

Trending on ETF Trends

Best of Both Worlds With This Dividend ETF

Momentum ETF Tries to get its Groove Back

The Best and Worst ETFs of April

ETF Performance Report: April Awash for Equities

Growth: The Operative Term in the Financial Advisory Industry?