These are the obstacles we all face in trying to achieve our financial goals:
One of the core inputs required in the financial planning process is the assumption of what the future return of a given portfolio will be. Obviously higher returns are preferable because they translate into greater spending power and/or reaching your goals sooner. Yet higher returns come with a caveat; higher risk. There is a very strong correlation between risk and return.
As a Christian based financial planner a question I often get is what does the Bible say about handling money and finances. Here are five key biblically based principles that if followed will lead to a much more rewarding life:
Forecasting company, FiveThirtyEight – founded by Nate Silver, has an excellent track record when predicting future outcomes, particularly within the political arena. Nate Silver is the modern day EF Hutton. When he predicts, people listen. Or more accurately, when he predicts it is almost a foregone conclusion. Until it’s not.
It is human nature to focus more on the present than the future, which is in line with our basic instinct of survival. After all, if we don't take care of the now, there may not be a future.
The chart above covers the S&P 500 (a stock market index) over the past 140 years. What is interesting is that it looks relatively smooth with a few bumps here or there. However, when you dive in under the hood and look at history it tells a much different story. During this period of time we experienced the following: