General Financial Planning For the Future in Turbulent Times

by Lance Winslow

Far too many investors get freaked out during a recession, or an down turn in the business cycle and sell all their stocks right after the stock market collapses. And then they promise they will never buy another stock of any company as long as they live.

Of course, as the business cycle starts going back up again they see everyone else making money on their investments and they decide it is time for them to investigate and buy back in. But by this time the market has reached its next top and as they buy in at the top of the market, it collapses all over again, and they lose all their money, because they once again get out at the bottom.

This is why investors should hire a financial planner who can watch the peaks and valleys of the business cycle, and prevent investors from investing in the wrong types of companies at the wrong times, as well as help them diversify their portfolios. This way they are not too invested in one type of investment-vehicle that will burn them.

Now, some investors believe that they can do all the investing themselves and they are smart enough to time the market and make money without a financial planner. Whereas, this might be true if they spent a whole lot of years studying things, and spend all day watching the stock market, but alas investors really don't do that. Many of them have other jobs and they are busy all day doing something else.

This kind of thinking can be a mind trap for someone who is somewhat arrogant, and believes they can do everything by themselves. The reality is that even general financial planning takes into consideration the future turbulent times that are ahead. And it takes advantage of the up cycle during expansion periods. Please consider all this. Thank you very much.

Lance Winslow is a retired franchisor - Lance Winslow's Bio. Lance Winslow is formerly the CEO of WashGuys family of franchises which Lance; http://www.windowwashguys.com/links.shtml.

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