Lessons of the Fall

Aristotle observed that true learning only comes through pain. Following that logic, the recent market downturn should have taught us a lot!

Here are some of the things we learned (or should have learned!) over the past year:

Lesson 1: Reassess your risk tolerance.

Are you less aggressive than you originally thought? If fear led you to sell during the decline, then your risk tolerance is probably more conservative than you originally thought and you should make the appropriate changes in your portfolio.

Lesson 2: Reasses your expectations about future returns.

Still dreaming of the double-digit returns of the ‘80s and ‘90s? Make sure you base your projections on realistic expectations of future returns. It’s better to be surprised to the upside rather than realizing you won’t be able to retire because you didn’t get the returns you expected.

Lesson 3: It's OK to turn off the financial news.

Newsflash: The financial press cares about making money, not whether or not you achieve your financial goals! So during the next downturn (yes, there will be another one!), turn off the “doom and gloom” and stick to your financial plan. (Don’t have a financial plan? See “Lesson 5”.)

Lesson 4: Cash is king.

Cash is important for several reasons. First, everyone should have a cash reserve for emergencies. Second, cash holdings are stable, so having cash in your portfolio can calm your nerves when the market is falling. Third, downturns like the one we’ve experienced can create excellent buying opportunities, and the only way to take advantage of them is to have cash on hand.

Lesson 5: Don't leave your financial future up to chance.

Financial success doesn’t occur by chance, so take an active role in planning your finances. Make sure your financial planner is providing sound financial advice rather than simply selling financial products. The best way to do this is to work with a “fee-only” advisor that never accepts commissions from his or her recommendations. And, if you’re a “do-it-yourself” investor, consider getting a second opinion from a fee-only advisor that works on an hourly basis.

To learn more about our company - and find out how we are different from other financial advisors - call (254) 227-6433 or visit www.VannoyAdvisoryGroup.com.

MCC Course - "Financial Planning from A-Z"

Do you remember when all you had to do to be a successful investor was buy a tech stock and wait a few hours? And the phrase “financial planning” meant selling some WorldCom to diversify your portfolio with Global Crossing or Enron stock?

The world of investing has changed, and financial success no longer occurs by chance. That’s why I’m offering a class at McLennan Community College this Fall that covers financial planning strategies you can use to prepare for whatever the future brings.

This class will be informational only and will focus on major aspects of financial planning such as laying a solid financial foundation, building and protecting your wealth, financial goal planning, and much more.

You will leave the course more informed about the processes, tools, and strategies involved in the financial planning process…some of which the “insiders” don’t want you to know!

Visit the MCC Continuing Education website to register.

Name: "Financial Planning from A-Z"

Cost: $45*

Time: Tuesday, 7 to 9 PM

Dates: October 27 – November 17
Course #: AVC 2080.01 (Listed in "Special Interest" section.)

*The original price of the course listed in the printed Fall schedule included course material. The new cost ($45) does not include the book we will use - “Investing in an Uncertain Economy for Dummies” - which can be purchased at bookstores and online.

To learn more about our company - and find out how we are different from other financial advisors - call (254) 227-6433 or visit www.VannoyAdvisoryGroup.com.

"Your Money Monday" Turns 30!

Nick Piesco and I recently recorded our 30th segment of "Your Money Monday" for Waco/Temple/Killeen NBC affiliate KCEN9!

I had planned to write a post to announce the six month anniversary, but I missed it by six weeks!

The purpose of the weekly segments is to deliver financial advice and answer viewer questions.

Here are some of the topics we've addressed over the past 7 1/2 months:

- Asset Allocation
- 401(k) Plans
- Auto Purchase vs. Lease
- Selecting a Bank
- Myths About Financial Advisors
- Fixed Annuities
- Myths About Investing
- College Planning
- Tax Efficient Investing

"Your Money Monday" airs each Monday during the KCEN 9 Texas Today Morning Show.

You can email your questions to Money Monday for the chance to have them answered on air!

Visit the Texas Today website to view a few "Your Money Monday" segments.

To learn more about our company - and find out how we are different from other financial advisors - call (254) 227-6433 or visit www.VannoyAdvisoryGroup.com.