gmhTODAY 20 gmhToday June July 2018 - Page 24

FINANCIALLY Speaking 1. Jeffrey M. Orth is a Chartered Financial Consultant, a Certified Advisor in Senior Living, and an Investment Advisor Representative, with over 15 years of experience as a business and personal planning, insurance, and wealth management specialist. Jeff is available for group lectures and private consultations. Visit integrated- or call 408.842.2716. The author’s opinions, comments, information, etc. are those solely his own and are independent of, and do not represent, HTK, and should not be considered as specific investment or planning advice. Please consider your options based on your individual circumstances. Past performance is not indicative of future returns. gmhTODAY and other listed entities are independent of and unaffiliated with, HTK and Integrated Financial Benefits Network (IFit). 2080613RM-Apr20 24 Taming the Bear I t is not uncommon to read an article or listen to a talk-show about positioning assets to protect yourself from the “next great bear market to come.” They rarely tell you when the down turn will happen, but they are “sure it will be pretty soon.” It’s actually easy to position your portfolio for a bear market if you know when it’s coming! About a week before it starts, you position all your investments in something designed to protect you in a down market, or you take all your money out of the market by placing it in cash until just before the next bull market begins. Easy, right? The problem is no one knows, with any real precision, when a bull market will start, or when it will end. That doesn’t seem to stop economists from guessing—and often guessing wrong. I have never met anybody who was actually good at timing the market consistently. Since we have been experiencing one of the longest bull markets in history, the media is ramped up to get the scoop on the next major downturn. By doing so, they cause people to worry and second guess their long-term invest- ment strategy—assuming they have one. of all fees, including taxes. It’s not how much you make but how much you keep that really matters. A focus on cost without thoughtful consideration of an investment’s real value is short-sighted thinking at best. 4. Making investment decisions based on emotion instead of logic. Emotion is a major reason that many people enter or exit the market, but it is seldom a good one. From my experience, people who let their feelings dictate when they buy or sell investments tend to purchase late in an investment cycle and miss a lot of potential growth. As hard as knowing when to get in is, timing an exit from the market is even harder. 5. Forgetting long-term objectives, or even worse, not having them. My clients all go through a process with me that I call “lifeboat drills.” Being prepared by discussing ahead of time what it’s like to go through a major market correction takes away a lot of the fear, and reduces the urge to panic when t