Quick Hits: 20hr Flights | Wrong Inflation | 5 Traits of Successful People

May 6, 2022

When things get volatile, people look for answers…usually in the wrong places.

Why is it that the media blames random things like the employment report causing market wide sell offs?

Call me naïve, but what common investor looks at the employment report and says – “that doesn’t look good, I’m going to sell my vanguard funds!”

The misinformation is boggling.

Hope you enjoy a few articles that I thought could be beneficial for your prospects and clients this week.

Get out there and help these retirees! They need it!

Or…

If you want to take a 20 hour flight to Sydney they have that too.

Here are your Quick Hits:

Great piece explaining how the drops in the market aren’t that they are huge hits, but more importantly they are surprises.
“One truth is that if you’re only saving for the risks you can envision, you’ll be unprepared for the risks you can’t imagine every time. So the right amount of savings/security/liquidity is when it feels like it’s a little too much.”

“First, this argument assumes that your inflation rate is the same as the inflation rate calculated in the CPI index. But, we know that this probably isn’t true. Since everyone consumes different things in different quantities, we all have our own personal inflation rates. For example, since I don’t own a car, higher gasoline prices impact me less than someone who commutes to work everyday.”
“Of course, I am not advocating that you start re-using your dental floss or making your dish soap at home, but if inflation worries you that much, spending less is your best option, especially in the short run. In the long run, I recommend growing your income and buying income-producing assets that will rise with prices over time.”

“If you have to sell investments for cash-flow needs during a down market early in retirement, there can be a long-lasting adverse impact on your portfolio.”
“Make sure you have enough cash so you don’t have to sell your [investments] to have cash,” said David Peterson, head of wealth planning at Fidelity Investments. “You don’t want to do that in a down market.”

This article was shared with me recently and I it was too good not to share again.
“Successful people have clear-cut goals. Instead of vague goals like “become rich,” their goals will be specific, like “expand from one to three stores within the next two years.””

This was an interesting take on the WFH movement we’ve seen these past few years.
“Instead of going hybrid, Murph recommends organizations commit to either fully in the office—which he is not a fan of—or a remote-first program.”
“There is a built-in imbalance between those going into an office and the people at home….The wear and tear on their mental and physical health takes a toll.
Meanwhile, people at home may be seen as an afterthought. Managers will forget to get them on critical Zoom calls. They’ll miss out on impromptu, serendipitous encounters in the hallway, cafeteria and elevators. While the top brass is taking out a select group of office workers to celebrate a big win, the work-at-home folks, who may have been instrumental in the success, are left out of the party.”
“Murph believes that companies that intelligently adopt and manage a remote workforce will succeed and thrive. Due to the lifestyle, fairness, level playing field and the appreciation for freedom and autonomy, remote firms will likely attract some of the best and brightest talent

“The difference between stupidity and genius is that genius has its limits.”

~ Albert Einstein

Posted in Quick Hits