GREED & FEAR

When people face an economic and financial trial, they typically have two responses: greed and fear.

There’s always a better response. We can help you build a financial plan that allows you to enter an economic downturn with confidence, knowing that your future and legacy are safe.


We want you to be financially independent so you can do amazing things for God with the many resources He’s put at your disposal. But how do we do that? Well, first we need to address the emotions of fear and greed. And to be honest, greed is just another form of frear.


Sometimes I see destructive behaviors when things are going well. You first thought might be “that’s odd because if things are going well, how could someone be destructive?”


\\ "The need to preserve what we have is a good instinct."


Many people get “FOMO” or Fear Of Missing Out which is another term for greed when you break it down. What often happens is people jump on right at the top of the curve of investor enthusiasm but forget that income comes back down. So, you need to recognize this urge in you. You will look at investments and have the tendency to fall into FOMO during good times.


FOMO can also lead you to take unnecessary risk. Watching the market and working with clients over the last two decades, I’ve had a close look of investment behavior during a swinging market. FOMO can also lead you to take unnecessary risk. Most people think that in order to get ahead, you’ll need to take some sort of financial hit. They don’t believe that growth and safety can happen synonymously.


But the second fear, besides fear of missing out, is really the fear of loss. Some people pride themselves on saying, “well I don’t have that kind of fear.” But a little fear is healthy. It’s built into our nervous systems to have the fear of survival and self-preservation.


But mainly what I’m seeing is again, fear of loss. At it’s most basic, the need to preserve what we have is a good instinct. It should hopefully lead to the instinct of preparing ahead for when things do go south. Anytime is a good time to make a plan if you don’t already have one in place.


But your plan should start with your own feelings about risk. It’s not good to do this in an environment where we’re not experiencing insane volatility.


Now is the best time to sit down and say ‘Okay, next time that happens, how much risk can I take and what would it take to recover?” At Lord and Richards we call that your ‘uncle point.’ And a more official title for it is our Financial Independence Review where we sit down with you, have a really intelligent, thought out, well-reasoned conversation with you about risk and your portfolio.


Once you have the baseline in place, create a strategy that will reduce the likelihood of going past that baseline. You need to base your risk on your goals, dreams, objectives and potential loss. It’s possible to build a plan that covers all these areas in advance.


\\" Anytime is a good time to make a plan if you don’t already have one in place."


If you find that your losses are exceeding your downside limit, that may mean there’s a problem in the plan, right? The plan didn’t have the right tools and maybe it’s time to come in and talk to us about how to get a better plan in place.


We’ll help you adjust the plan and keep working it until it’s right. We'd like to put clarity and financial peace back into your life. It only begins with a simple financial independence review, which we're delighted to offer you “on the house”!

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