Well, we made it to 2021 so how are you feeling? The start of a new year can breed hope for new possibilities. Even though 2020 was oppressive to most in so many ways, I do think we can still hold hope for the new year. I have never been one to focus on New Year’s resolutions as they always felt like a recipe for disappointment (I know that is not the case for everyone, though). What I am striving for this year is not new resolutions, but rather strengthening routines. Routines feel more in my control, and if 2020 taught anything, it is to control what we can control. One of these areas for me is to practice gratitude. I have begun by thinking of 3 things I am grateful for each night before I go to sleep. It is refreshing and encouraging to think on these things. When we talk later this year, feel free to check on my progress with this. This is just one small example, and I am sure that you have others that jump to your mind. Let me encourage you to pursue practices like this for the sake of your own mental health in 2021.
Speaking of control…
You likely have heard us say in the past that market performance is not an area that any of us have control. Because of this, it is wasted energy to focus and worry about market movements. You should spend that energy doing things you can control: spend less than what you make, avoid debt, build cash reserves, plan your generosity and plan your future – practical principals that have an outsized impact on your life.Small, quiet acts
Whether the temptation is to abandon a free-falling market (like the one we encountered less than a year ago), or chase after winning streaks, an investor’s best move remains the same. Concentrated bets on hot hands generate erratic outcomes, which makes them far closer to being dicey gambles than sturdy investments. Trust instead in the durability of your carefully planned investment portfolio. Focus instead on small, quiet acts. That is what we are here for, for example, to:- – Remind you that your globally diversified portfolio already holds an appropriate allocation to Tesla stock (which may be a lot, a little, or none, depending on your financial goals.
- – Guide you in rebalancing your portfolio if recent gains have overexposed it to market risks.
- – Help you interpret the 5,600 pages of the newly passed Consolidated Appropriations Act, 2021, so you can manage your next financial moves accordingly.
- – Assess potential ramifications of the Biden tax proposals and advise you on any additional defensive tax planning that may be warranted for you in the years ahead.
- -Remain by your side as you encounter whatever other challenges and opportunities 2021 has in store for you and your family.
