Financial advice that starts with a plan.
We help you do more with what you’ve earned.
I recently sat down with ABC 10News to share some thoughts on how investors can approach today’s stock and crypto markets. The key takeaway? Know what you are investing in and have patience.
The point of investing is to prepare for the future. Not just your goals, but also to stay ahead of inflation. If you keep your funds idle in cash, inflation will slowly erode your purchasing power. By investing in productive assets, you can stay ahead of that erosion.
Before you invest your funds, you should at least have an emergency fund and pay off any high-interest debt, such as credit card debt. For more on where you should put your money first, follow our step-by-step plan on the optimal order to save and invest your money: the Sequence of Savings.
Once you have these set up, you are ready to invest. Stocks have a long track record of compounding wealth, whereas crypto is new and largely untested. Most financial advisors will shy away from crypto assets, citing their decentralization and volatility. These are valid concerns. However, we differ as some investors should have a small allocation to crypto. For our more aggressive clients, we invest in this asset class given its hedge against government-backed securities and growth potential. Though the key point we try to drive home with all of our clients is that crypto is extraordinarily volatile and you must size your bets accordingly.
It is not uncommon for cryptocurrencies to drop by 70-80%. If a coin goes to zero, one must be okay with it.
Investing isn’t complicated, but it does take discipline and patience. Whether you’re planning for retirement, building wealth, or just keeping ahead of inflation, the rules don’t change: start with a solid foundation, stay calm, and think long term.
