"When I think about, I think about what a huge help he was for me, and for mankind. A few people can have that much influence on so many people and improve so many lives as Jack." - David Booth
In this timely video, Dimensional demonstrates the valuable role advisers play by helping their clients stay disciplined and invested when markets are volatile.
Tuning Out the Noise takes viewers on a journey through the "lost decade," featuring the media’s amplified coverage of headline events and pointing to the positive outcome that a disciplined investor could have experienced in the recovery.
If you have questions or simply wish to see how an adviser could help you stay disciplined, please don't hesitate to contact us.
By now, schools are back in session across the country and many parents are likely thinking about how best to prepare for their children's future college expenses. In fact, it's not far off to say that most, if not all, parents have thought about future college expenses before their child was even born.
In the following issue brief from Dimensional, they give you a glimpse at some of the facts and questions that you should address with your trusted adviser when constructing a plan that incorporates higher education costs.
Education planning is a complex issue. Our investment counsellors will not only help you sort through the complexity, but they will help you to create a disciplined approach to saving and investing that can help remove some of the uncertainty from the planning process.
Once your children are in college, our investment counsellors will help you construct and execute efficient spending strategies based on the assets at your disposal. With a comprehensive college spending plan in place, one can help keep their retirement savings intact.
As always, contact your investment counsellor with any questions.
All of us feel obligated to be well informed about current events throughout the world, but it's difficult with the abundance of information available to us. It's increasingly difficult when a majority of the headlines tend to focus on the challenges that the world faces. These headlines can lead us feeling depressed and that all hope is lost.
In the piece, Jim Parker, VP at Dimensional Fund Advisors, outlines 10 developments that mark significant advances throughout the world and reasons for us to be hopeful.
The media, not unlike the market, can take a toll on our emotions. Our clients know that it's OK to feel these emotions, but it is never OK to act on these emotions. Investing and emotions do not go well together; in fact, they can cause irreparable damage.
Jim Parker ends his piece on a note that we believe everyone could benefit from:
"The world is far from perfect. The human race faces major challenges. But Just as it is important to be realistic and aware of the downside of our condition, we must also recognize the major advances that we are marking.
Just as there is reason to for caution, there is always room for hope. And keeping those good things in mind can help when you feel overwhelmed by all the bad news."
In light of the upcoming March Madness that will soon take over the sports world, Dave Butler, a vice president at Dimensional, explains the power of routine in responding to pressure and offers a sports-related example to help investors apply discipline in a stressful market.
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"The same lessons apply to the seasoned investor. A chaotic market is akin to what the visiting team experiences in a gym, where opposing fans and players are doing everything possible to distract you. You stay focused on a routine burned into your nature through coaching and repetitive practice.
The components of the seasoned investor’s routine are similar: the investment policy statement, the regular review of family goals and liquidity needs, and the regular calls an advisor makes during good and bad markets. These and other actions are all part of the process developed to summon that muscle memory needed in stressful times. Just as the great athlete navigates through the moments of pressure in any athletic event, the actions are part of the routine that allows the individual to navigate through a chaotic market like we have today. "
As a lifelong player and fan of basketball, this metaphor couldn't be more true. The routine can be attributed to the process that you take when investing. Focusing on the "routine" in this case will help you maintain your discipline during volatile markets. As you can imagine, your advisor is your coach and will help you stay disciplined during these times.
Weston Wellington, a Vice President at Dimensional, provides insight on the most recent volatility that occurred at the end of August.
"Financial professionals generally describe any decline of 10% or more from a previous peak as a “correction.” Should investors seek to protect themselves for further declines by selling, or should they consider it an opportunity to purchase stocks at more favorable prices? "
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