Cash is King, Until It’s Not

2017 was a rarity, all major markets were up big time. In 2018 we would like to believe more of the same, but on January 11th who really knows. People have been making forecasts and predictions all week long but no one knows..

A good prediction might make the news but I promise you it has no real value. It’s just a guess.

If you have been out of the markets since the credit crisis and missed out on the 2017 returns are you finally at your breaking point?

Did you get your end of the year bank statement and compare that interest to the Dow Jones or S&P 500 total return?  How does your stomach feel?

This is the point where cash starts to turn on you and it loses its royal crown. Cash is no longer king….

The emotion of missing out on another great year finally topped your fear of large losses.

Multiple positive years in a row will do that….and push you back in, potentially at the top before a pullback, restarting the cycle of buying high and selling low all over again.

So what should you do?

The answer is actually pretty simple.

After accounting for emergencies and a surprises, figure out how much money you could invest for your future if you wanted too. It can be in a lump sum or a monthly amount.

Then cut that number in half and put that to work.

Because you see it doesn’t have to be all or nothing.  Putting your cash to work without remorse is the trick.  We don’t want you to feel bad about missing the run up or hurt if there is a fall down.

But having an investment plan is the key. I’m not talking about asset allocation here. I am talking about when/how do I actually make investments. When you get bonus, when your bank account is above X, at the end of the year…it doesn’t matter.  But you need to have a plan!

Before you were letting emotions drive your decisions.

Fear of losses and now the market is too high…..we have all said it.

But if you come to grips with the reality that it does not have to be all in or all out and build an investment plan that works for you, you can get back in without any remorse.

Do it today!

-Jared