“Everyone has a plan until they get punched in the face – Mike Tyson”


How do you like 2016 so far?

I am not one for riding roller coasters and this year has already had so many ups and downs in last three weeks, that I am concerned that someone may earn the call sign of Two Bananas. The only food that tastes the same going down as it does coming back up.

It’s quiz time and I probably already know the score for 80% of you – F

Did you plan for this volatility?

Do you even know how to handle the risk that might be in your investments, IRA or 401(k)?

Have you even looked to see what the year to date change is in your account value?

Do you have a plan and know how much risk and return you need to get the results that make your plan work?

We have spoken to many of our clients this week and they know the measures that we have taken to minimize the volatility in their investments and focus on sticking to their plan.
Have you spoken to your advisor? Scared to call them and find out the truth?

Are you OK?

What about that plan you have? Do you understand it? Are you working together with your advisor to implement it fully? Don’t feel as though you have to understand all of it at once. Even the Ten Commandments needed some back up material.

The first three weeks of 2016 have been brutal and emotionally disturbing even for those that have a plan. The pain is real and like Mike Tyson said, “Everyone has plan until they get hit” – the key is the ability to stick to your plan and be prepared for financial hurdles and obstacles.

“Buy, Hold and Hope” is not a plan. If it is yours, I have one question – how has that worked for you?

Economies change. Look at Oil in 2008 it was priced at $145 a barrel in July 2008 and then dropped to a low of $30.28 on December 23, 2008. It returned to over $100 a barrel in early 2011 and dropped to a 13 year low on Wednesday, January 20, 2016 closing below $27 per barrel.


So what is your plan? Do you or did you have one and now have no idea of what to do?

What do you do now?

In contrast, clearly defining all your financial goals and then prioritizing saving for them over your lifetime. As opposed to saving just for retirement, or attempting to fund all goals at once. It will lead to the best results.

The power of having a financial plan in the first place has been copiously documented. But taking a goals-based approach goes one step further by having a bunch of plans for each desired outcome, instead of one big pool of savings. This could mean creating a portfolio of sub-portfolios, with each account earmarked with a particular threshold for a particular goal. Psychologically speaking, this changes the stakes so that the risk is no longer not beating a particular benchmark in the abstract, but failing to reach the goal. (I literally name savings accounts after the thing I’m saving for. It’s motivating to see your desires articulated on a monthly statement.)

A journey begins with a single step. If you want to understand the risk in your investments and how you can have a goals based plan that adapts to the changing economy, then give me or one of our team members a call (214-239-4700) or Click here to schedule an appointment

Let’s discuss what your plan can be for you and your family.

Benjamin Franklin said it best, “If you fail to plan, you are planning to fail!”

Michael Tannery CPA CDFA™ AIF® ● CEO
Registered Principal
Be A Financial Olympian

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