Why Beneficiaries Are Important

In this video, Reagan Herrera discusses why properly naming beneficiaries is critical to solidifying any financial plan.

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Choose Faith over Fear

My son will soon be turning 16 years old…and will be driving! My elation for him reaching this milestone has quickly subsided and has been replaced with fear. There are a few frightening parts of this development:

My 16-year-old is driving on busy streets;
There is one more 16-year-old driving on busy streets
The cost of a 16-year-old’s auto insurance!
Grappling with this new fear and trying to own it, I thought about how much fear impacts investment decisions. The fear may manifest itself in an infinite number of forms, but when distilled, it generally hinges on a few basic questions-
Will I have enough money to stop working someday? Will that money last long enough (what if I live a long time – will I run out of money?)
Will the markets crash because of the following: elected US President, high inflation, world conflict, etc?
Will I die prematurely and not have a chance to enjoy my money?
Ruminating on this, I am reminded of the story in Mark 4 of the Bible, when the disciples are in The Sea of Galilee with Jesus when a storm hits their boat.
After a full day of teaching, Jesus and his disciples are on a boat crossing the Sea of Galilee toward the eastern shore. Evidently, without warning, a massive storm erupts, causing waves to pour into the boat and causing the disciples to be scared out of their minds!
Yet, Jesus was asleep!
His otherwise happy followers are infuriated. “Is it nothing to you that we’re going down?” they scream as Jesus snoozes away.” Jesus was sleeping at the back of the boat with his head on a cushion. The disciples woke him up, shouting, “Teacher, don’t you care that we’re going to drown?
Finally, he wakes up and shouts, “Quiet! Be still!” Suddenly, the wind stopped, and there was a great calm. Then he asked them, “Why are you afraid? Do you still have no faith?” The disciples were terrified. “Who is this man?” they asked each other. “Even the wind and waves obey him!” Jesus asks the disciples, “Do you still have no faith?”
At the onset of their voyage, the disciples are overcome with fear. But the journey ends with them being full of faith. Jesus wanted them to learn to conquer their fears and trust even in the middle of the storms of life.
Our faith is constantly tested. We have seen a historic run-up in wealth, yet I see more fear than ever in investors. We must build our financial lives on a solid foundation – this is within our control. Storms are not in our control.
Here are eight ways to increase faith in your investment plan:
Remind yourself of why you’re investing and review your goals.
Turn off the news. We would see more confident investors if more people stopped watching and reading news, especially the fear-mongering news.
Become a student of market history.
Diversifying your investment portfolio across various asset classes can act as a protective shield. This strategy helps spread risk and minimizes the impact of adverse market conditions on your overall portfolio.
Stay disciplined by sticking to a well-thought-out strategy. Adherence to a predetermined plan can minimize emotional reactions to market fluctuations.
Acknowledge the future is unknowable, but that’s ok.
Lean on your financial advisor, as they can provide valuable insights, perspective, and guidance.
Stop seeing market volatility as a threat and consider it an opportunity to buy assets at potentially lower prices. This perspective shift can transform fear into a strategic advantage.
Faith involves trust and patience in the market’s ability to rebound over time and belief in the long-term growth potential of chosen investments. Having faith doesn’t mean ignoring risks. It means approaching them with a positive, forward-looking mindset and strategic planning.
There may be lots going on that could make you afraid and even panic. Successful investors must cultivate a mindset that promotes resilience, patience, and a long-term perspective by choosing faith over fear.
Faith in the future is not always natural, but I believe that choosing faith over fear when investing works given enough time. This isn’t blind faith, either. If history is any guide, there is plenty of reason to believe in capital markets over time.
– Kendall King