A week ago the Dow was over 17,500. By Thursday it closed under 17,000. Friday saw it drop below 16,500 and yesterday closed below 16,000. It is pretty clear than soon we will be in calamity and ruin… right?
Insights & Other Important Communication
Remember when it was so cold at the beginning of the year? As the mercury reaches the top of the thermometer, it is hard to remember when we never thought it would rise off the bottom. Behavioral scientists refer to this phenomenon as recency bias and it is just as applicable to investing as it is to the weather.
Developing a clear objective can be the hardest part of the financial planning process. For example, clients often ask “How much money do I need to retire?” but can’t tell me what they expect from their retirement. A good financial plan is like a road map. If we know where we are and where we want to go, we can use the plan to determine the best route to get there. But just like a road trip, there are many options along the way. You may want to take the Interstate which allows us to go faster and has fewer opportunities to stop along the way. Or perhaps you would rather take the scenic highways and country routes; taking the time to sightsee and explore along the way.
It is that time of year again. Maybe it is an attempt to give their members some much needed comic relief, but every year the Minnesota Society of Certified Public Accountants releases a survey of the most outrageous tax deductions attempted to be claimed by clients.