Three Guarantees of Financial Planning

While it is a boilerplate disclosure in the investing industry to not offer any type of financial promise or guarantee there are in fact three guarantees that I agree with Tim Mauer on when it comes to investing and financial planning which are

1. Surprises
2. Change
3. Failure

Mauer a contributor at Forbes in this piece here gives a but of a sneak preview of our future seminar on June 18th "401k & 403b You have Options".  As Mauer put it, "surprises require margin, change requires flexibility, and failure requires grace".

To break this down further we talk allot about a required margin of safety when it comes to investing.  We look for investments which are trading at a discount to our intrinsic value.  It helps protect us from volatile markets and enhances our winning %.

The markets are an ever changing place which requires investors to be nimble even if they consider themselves long-term investors.  No one ever lost a cent taking a profit so people shouldn't be afraid to sell and take some equity off the table when necessary.  Look to be a contrarian at times as what is in favor today may be out tomorrow.

If you think in terms of baseball a successful hitter fails 7 of 10 times at bat.  Investing is similar in the case that not every pitch will lead in a successful investment.  This is why it is prudent to not swing for the fences every time at bat.  Doubles and singles go a long way towards achieving your financial goals over a season.

One of the preferred investment vehicles of choice with DWCM which will also be discussed at the June 18th event is the Roth IRA.  Mauer touched on a few of the basic positives with using a Roth IRA.  They include the following

• Tax-free growth
• No forced required minimum distributions
• Ability to take money when needed (although you can only take out principal without being taxed)
• Use as an educational savings platform in addition to retirement savings

It's never too late to get started all it takes is a goal and a plan.