It’s funny, whenever anyone learns that I am a financial planner, they automatically ask me about an investment; these days, it’s Facebook’s IPO (which stands for “initial public offering”: the first time a company’s stock is for sale to the public).
I either clarify things (“Actually I don’t manage investments, I help people make wise and beneficial financial decisions based on their whole financial picture.” This is sometimes followed by a “Ohhhh” and the person heading for the taco dip.) or I go along with the conversation to be a good sport, (“Oh, yes that’s something, huh?”) depending on the context of the conversation and who brought it up.
In an earlier post (“Don’t Ask Me About The Market” https://amyjolauber.wordpress.com/2011/05/18/dont-ask-me-about-the-market/) I talked about how little I follow the market and why. Here’s the skinny: so much of being a financial advisor is coaching people to think long-term; if the advisor is discussing everything happening in the short-term, isn’t that contradictory? Well, it is for me. Plus I’m not the least bit swayed by the day-to-day machinations of the market, it only feeds our lizard brain’s fight-or-flight response, causing all kinds of stress about things we clearly cannot control and makes us crazy. Who needs that? But isn’t it boring to just make wise and beneficial financial decisions day after day? You say boring, I say peaceful. PotAto, Potato.
I’m aware of what’s happening in the market without being suffocated by it. You can, too.
IPOs are an opportunity to buy into a company on the ground floor; a very enticing place to be if you suspect the company has a good future in store and you could benefit from it. But it’s not for the timid.
Rule #1 in investing: Know thyself.
Rule #2: Know thy advisor.
Have a wonderful weekend and don’t forget to “like” me on Facebook! 😉 https://www.facebook.com/LauberFinancialPlanning
Photos courtesy of ClipArt