Who Are You Taking Your Financial Cues From?
Many of our financial decisions are rooted in what others are doing; however, oftentimes their goals are far different than ours. They are essentially playing a different game with different rules. In this episode of the Stuff About Money podcast, Erik Garcia, CFP® and Xavier Angel, CFP®, ChFC, CLTC, discuss the dangers of taking financial cues from playing different games than we are in both investing and spending.
Episode Highlights:
- Erik discusses how the current geo-political scenario affects certain investors and investments. (5:12)
- Erik mentions that if history is any guide or indicator of what is to come, we will recover eventually. (8:32)
- Erik discusses that if you’re playing the long game but decide to switch to short-term rules, you’d be out of the market right now. (8:53)
- Erik explains the importance of making sure you’re playing according to the rules of the game that you’re playing. (9:43)
- Erik and Xavier talk about understanding the game you’re playing in terms of spending. (12:28)
- Erik emphasizes the importance of accountability, specifically the role of a financial planner or financial advisor in the client’s life in keeping them responsible for their long-term plan. (13:52)
- Erik believes that it’s important to know your timeline for retirement and not be influenced by the actions and behaviors of people who play different games than you do. (14:46)
Key Quotes:
- “If I’m playing the long-term game, and I’m invested for 10, 20, 30 years, then the stock price of GameStop, what it’s going to do by the end of the day, has less impact on my plan, what it’s going to be at in 20 years has a greater impact on my plan.” – Erik Garcia, CFP®
- “If we’re playing the long term game, and we decided to start playing by short term rules, okay, then you’d be out of the market right now.” – Erik Garcia, CFP®
- “Know the game you’re playing, identify the game and build your plan accordingly.” – Erik Garcia, CFP®
