In this video, Mark Gochnour, a VP with Dimensional Fund Advsiors, briefly describes his parent’s investment journey, and how simple advice will help with decisions that can result in a positive or negative investing experience.
Mark was on the phone with his mother in February of 2009 when the market was down 50 percent. Mark’s mother told him they were considering selling their home in Palm Springs because they lost half of their net worth in the recession. This reaction to the market is not uncommon. When things go bad, we want to back out and cut our losses. However, in doing that, we also cut potential future gains. A decision like selling your home is something that should not be based on short term market conditions. It should be based on things that you can control, such as your cash flow and your personal goals. Working with a financial advisor can help you keep a long-term perspective when faced with tough decisions.
The stock markets usually go up and down in the short term, but they have an upward trend in the long term. Peace of mind comes from having realistic expectations and keeping things in perspective. Regardless of whether your journey has been good or bad, you can improve your financial well-being by working with a trusted advisor and making sure they have your best interest at heart.
Trent H. Colledge is an Intern at Sparrow Wealth Management. He is pursuing an undergraduate degree in Utah Valley University’s Personal Financial Planning Program. He will take the Certified Financial Planner exam in March 2018, and will graduate in April 2018. He enjoys playing basketball, spending time with his family, and helping others learn about finance.