Do You Have an Investment Plan?

Justin Goodhue |

A clear investment plan is essential to pursuing long-term financial success. While strategy is important, it’s nothing more than a manifestation of your process and plan. In times of market uncertainty, a plan may enable you to control your emotions, shut out the noise, and bring your focus back to your long-term goals.

Too often, we see people focus on the short-term outcomes of their decisions when they have little impact on their long-term strategy. For example, a sudden drop in the market due to an unforeseen event can be concerning, but in time, it may be nothing more than a minor blip. A solid financial plan can remind you of that. It can also remind you that short-term results are random and fleeting, meaning you have no control over them.

Time and time again, it's been shown that investors who stay focused on the process, achieve their long-term goals. If mistakes are made, you’ll have a system to adapt and learn from. No panicking or second-guessing, just a clear assessment of where you are and where you want to be, and whether your current strategy has the potential to get you there. If the strategy doesn’t work, we adjust.

A clear and well-thought-out financial plan's significance becomes even more pronounced during market drawdowns and periods of volatility. In tough times, having a plan to stick to acts as a beacon of stability. It provides confidence and peace of mind knowing you have a strategic roadmap to weather economic storms, minimize risks, and make informed decisions. ​​​​​