Are You Still Using Road Maps?
Hi, , it’s officially summer!
I was with a group of friends last week discussing where to go for dinner. When our local favorite wasn’t an option, we had to pivot and try a new place none of us had been to. When someone suggested a spot, another asked for directions. It didn’t take long for someone to quip, “If only there was a device for that…”
We’ve evolved from carrying around folded paper maps, to printing step-by-step directions from MapQuest, to using outdated TomTom GPS navigation, to today’s live traffic and rerouting maps like Google and Waze. Much like road navigation, it still seems odd to me when people wonder if they’ll be okay for retirement or if they’ll have enough—“If only there was a device for that…” In this case, the device is a CFP, but there’s still a device for that.
Financial planning is a lot like a GPS. I’m surprised by how many people I speak to who are working with a ‘financial planner’ and are lucky if they even have a roadmap, which is usually a stagnant paper document they got in the ‘80s.
My favourite thing to see when I’m battling traffic is my GPS finding a quicker way, but what happens when there are delays ahead? Can your GPS or financial plan account for accidents or road closures? Can it find a more efficient way to get to your destination? Your financial GPS should also plan for the “what ifs.” This is why we’re members of organizations like CAA, but have you crash-tested your financial plan to see if it will survive “what if” scenarios?
We experience many changes over our lifetime. Major life events like marriages, divorces, births, and deaths, as well as more subtle changes like career shifts and raises can significantly impact what we’re able to accomplish. There are also external factors like pandemics, market fluctuations, and new tax laws that can affect our goals and ability to achieve them.
You should expect nothing less than a financial GPS that recalibrates and evolves with you and your family. It should account for contingencies and all probable outcomes to give you the best chance of achieving your goals.
Until next week, Happy Investing!
Trevor
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In Lighter News:
In 2021, Juneteenth was officially recognized as a federal holiday in the United States. This day commemorates when General Granger arrived in Texas to announce the end of the Civil War and the emancipation of enslaved African Americans. It took over two years for this news to reach Texas after President Lincoln issued the Emancipation Proclamation.
In The Markets:
This week will see the close out of the first half of 2024 and so far this year we have seen positive returns from both the major US markets as well as north of the border.
Last week was a shortened week due to the US holiday, but the DJIA saw a modest increase, supported by gains in major tech stocks. The TSX, S&P, and Nasdaq all had slight declines. This was largely due to investor concerns over potential rate hikes by the Federal Reserve amid ongoing inflation concerns.
Key economic data released during the week included lower-than-expected housing starts and a decline in consumer confidence.
