The Antidote to Fear & Uncertainty
Hi, Michael Miller here with Miller Premier Investment Planning. The video above and this blog is going to give you the antidote to fear and uncertainty by taking action. You will want to both read this blog as well as watch the 5 minute video to find the Easter eggs in each. If you like the video please feel free to subscribe to my channel as I have also posted a couple of other valuable videos that are not currently on my website.
Now that I have covered the housekeeping items we are ready to proceed with three things you can do to crush anxiety and fear in order to become a fearless and successful investor. In fact, these are the same three things we do with every client before managing the life savings they entrust us with for their financial security and retirement. These three things are so powerful that Miller Premier did not have any clients deviate from their plan during this crisis and they have thrived because of it! It is my mission to show you how you can do the same.
First it is important to realize that one of the foundations of a solid financial plan is RESILIENCY, which is the ability to get through a crisis without derailing your future. Well, the next crisis is here, and we don't know how long it will last. But it's not time to panic. Here's what you can do right now:
One: Treat your portfolio with care. Now is not the time to sell out or make emotional decisions. The number one enemy of every investor is themselves. We are all prone to it. How you ask? Well you need to understand that our brains are wired for survival. That's great if you are getting chased by a bear that wants to eat you...but it is horrible when it comes to investing. In times of panic and fear this fight or flight tendency kicks in and tells us we need to do SOMETHING and that something usually leads to selling investments low and near market bottoms. By the way in good times and near market highs the opposite happens. Our brains kick in a chemical called dopamine that has been observed in scientific studies to be at levels similar to someone taking cocaine! That causes investors to buy high usually during a market top and after they have been sitting on the sidelines. This process goes on in an endless rinse and repeat cycle and investors wonder why they cannot seem to get ahead.
Instead, it's time for careful changes, seeking out opportunities, and adjusting goals if the volatility is keeping you up at night. If you are worried about your investments, reach out. You shouldn't go it alone right now. Miller Premier can help guide you through these tough times and help you come out on the other side better and much stronger than before!
Two: Revisit your emergency reserves. If you're worried about loss of income this year, make sure you've got enough to avoid tapping your long-term investments ahead of schedule. Need help? I can help you identify your first, second, and maybe even a third source of cash if you think you'll need it.
Three: Build a flexible mindset. We don't know when life will get back to normal, so think about your plan A, plan B, and even plan C for 2020 and beyond. This kind of contingency planning is a great way to fight anxiety and build inner calm. We used this same type of planning before every major operation from Just Cause to Dessert Storm when I was in the 82nd Airborne Division and I use the same type of planning with my clients today. In fact we will not manage money for clients unless we have done the proper battle testing first. It requires some extra work but it pays off in a very BIG way! It increases your probability of success, increases your financial security, and gives you peace of mind! If you have questions about this please feel free to reach out to me. During the crisis I am providing this service free of charge but have to limit it to 5 people a month due to the time commitment. It is on a first come first serve basis.
We are in abnormal times, and it's normal to be worried about the future. Heck, I'm worried sometimes. I worry for my family and friends, our community here in Mansfield, Texas, and for America. I'm human too!
So I focus on what I can control. My behavior, my mindset, and my action plan. I'm using this crisis to grow stronger in my faith, as a father, as a husband, a community leader, and as a financial professional.
How can you use this crisis to grow stronger? What ACTIONS can you take?
If you have a question about what I have discussed with you or you'd like to speak personally about what's going on, please use the submission box on our website to send me a message. I'm here for you and I'll respond to you personally within 1 business day. In the meantime stay safe and God Bless!
Verse of the day: Plans fail for lack of counsel, but with many advisors they succeed. Proverbs 15:22
Food for thought: Maybe that is why you see long tables in the board rooms of major companies.
Michael Miller, CFP®