In keeping with my annual tradition, this is my last blog post for 2021 (no post scheduled for next Tuesday). Let’s get the business stuff out of the way first. Everyone likes to know, where will the markets finish for the year? Well, until trading closes on December 31 we really won’t know. However, according to MarketWatch, we are at 14.13% year-to-date as of closing on December 20, and that includes the recent large point drops in the DJIA. But keep in mind, the performance of a single year is not necessarily as important as the life of your investing plan. That is, if one year is bad, keep in mind there are more good years than bad. And, keep in mind that this is simply a calendar change. A convenience for accounting. There are a couple of very important things to keep in mind this time of year. One is your personal human capital. You and your family and loved ones. The other is that with the change of the calendar we focus on new goals. You know, those New Year’s resolutions. Let’s focus on these two things!
First up, let’s focus on our human capital. Focus on yourself and your own family. Even though we have all been together, maybe more than we would like, time with our family and loved ones is something we should value. Try a few activities that you might not normally do. For example, take an early evening walk and enjoy all of the lights this time of year. People seem to be in the mood to decorate this year. Consider other activities that you like that make you feel good, and improve your mood. Maybe you used to paint, or enjoy photography and got away from it. Now would be a good time to get back to that hobby, or even teaching it to a younger family member. Try to get outside and enjoy a walk, hike, run, or just some fresh air and sunlight with the family. Maintain contact with friends and family even if virtually. I get it, another Zoom is the last thing we want; but it can be different if it's a close friend or family member. Try it with a glass of wine or hot cocoa. Need a new show to lift your spirits? I highly recommend Ted Lasso. It’s quirky, unexpected, and dare I say it – heartwarming!
Now, what about those New Year’s resolutions? Yes, we’re all going to lose weight, eat better, stay in touch… Think about it, resolutions are really just goals. So, whether your resolution truly is to lose weight, or even if it’s financial, be sure that your goal is SMART! Your goal should be Specific, Measurable, Achievable, Realistic, and Timely - SMART! Yes, it’s an older approach, but it works. Write out your goal and make it real to you. Use the SMART approach to set a reasonable goal and one against which you can measure your progress. I’ll have more on goals in January.
That’s it for the last blog post of 2021. A reminder that it’s ok to keep an eye on your investments, but don’t fixate on the daily closing numbers. Have a plan, put it in action, and stick to it. More importantly, take care of yourself and your loved ones. Enjoy your human capital. Now, go bake some cookies, or go for a nice walk, or get a jump on those SMART resolutions!
As an independent CERTIFIED FINANCIAL PLANNER™, I can help you plan for retirement or other goals. I also have some good recipes to share if you are interested, and great trails to share. Contact me and let’s get started on a savings, investing, or retirement plan, or a walk! #talktometuesday #education #Hireaplanner #stressfree #christmas #solstice #savings #retirement #CFPPro #vacation #holiday #humancapital #SMART #resolutions