Recently I spotted a parent driving with her baby not properly buckled in a car seat. The mother sat behind the steering wheel with the baby in a Snugli™*. While Snuglies are generally considered a safe method to transport an infant, it’s absolutely crazy to use one when driving!
Unfortunately, I wasn’t able to stop the driver and give grandfatherly advice on how to safely transport a baby. Instead, I decided to talk about it here in the hope that someone will see this piece and pass along the safety wisdom to the right person. While thinking about child safety, I was struck by the similarities between parents ensuring their children’s safety and investors ensuring their portfolios’ safety.
Something “Safe” Can Sometimes be Unsafe
Just as a baby carrier can be unsafe if used improperly, “safe” investment methods may not yield the desired results without the right strategy. In my years as a financial planner, I’ve seen many people caught off guard by financial downturns. However, with proper planning and education, market falls shouldn’t come as a shock and don’t have to derail your financial security.
Diversification and Emotional Resilience
The cornerstone of any solid investment strategy is diversification. Like distributing weight across various pillars to support a structure, spreading your investments across different asset classes can protect you from catastrophic losses.
Emotional investing can derail even the most strategically diversified portfolio. Remember the 2008 financial crisis — fear and panic led many to make hasty decisions, worsening the situation. Maintaining a calm, calculated approach to investing will help you stay the course through market ups and downs.
Regular Portfolio Reviews
Strategic investments aren’t like buckling your children into a car seat and forgetting about them until you reach your destination. Just as you check on the kids in your rear-view mirror, you need to monitor your investments with a quick glance backwards to ensure they are performing as desired.
If you’re unsure about how to begin adjusting your portfolio, reach out for a professional evaluation. A small adjustment today could safeguard your financial future. Sign up for a free Cross-Border Financial Evaluation at profile-financial.com/call.
*I’m not sure if it was Snugli™ brand or another baby carrier, but everyone I know calls them “snuglies.”
Douglas Goldstein, CFP® is the director of Profile Investment Services, Ltd. www.Profile-Financial.com. He is a licensed financial professional both in the U.S. and Israel. Call (02) 624-2788 for a consultation on how to set up your American assets to meet your financial goals. Securities offered through Portfolio Resources Group, Inc. Member FINRA, SIPC, MSRB, FSI. The opinions expressed are those of the author and not those of Portfolio Resources Group, Inc. or its affiliates. Neither PRG nor its affiliates give tax or legal advice.
Published August 6, 2024.