At some point, everyone’s made a decision with the best intentions, only to have things go differently than they planned. Because nobody can predict how the markets will behave, investments can sometimes fall into this category.
We believe individuals should create a financial strategy that’s designed to help them work toward their financial objectives, but at the same time speak to their values, and reflect their risk tolerance and timeline for retirement.
With that being said, we live in a world economy where an economic or political blip on the other side of the globe can impact our financial situation.1 This can make it difficult for money managers, business leaders and politicians to agree on decisions that will lead to the most positive impact for the greatest number of people.
Inevitably, it seems, someone is left out or disadvantaged. In some other instances, the whole effort is undermined, and the only takeaway are the lessons learned from the shortcomings. For example, the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act comprised more than 2,300 pages of comprehensive reform proposals to help safeguard America’s financial system.2
However, now six years down the road, much of the law is still not implemented. As of July 2015, only 63 percent of rules had been finalized, while about 20 percent had missed deadlines, the majority of which concern derivatives and mortgage reforms.3
One lesson here is that sometimes trying to do too much results in too little. We might do well to create overarching goals but carve out shorter-term and more easily achievable solutions.
1 Christopher S. Rugaber. The Globe and Mail. Aug. 14, 2016. “U.S. economy grew at tepid 1.1% pace in spring.” http://www.theglobeandmail.com/report-on-business/international-business/us-business/us-growth-revised-down-for-second-quarter-consumer-spending-raised/article31570816/ . Accessed Aug. 25, 2016.
2 David Arthur Skeel. Wharton Public Policy. December 2015. “Five Years after Dodd-Frank: Unintended Consequences and Room for Improvement.” https://publicpolicy.wharton.upenn.edu/issue-brief/v3n10.php#section2. Accessed Aug. 25, 2016.
We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the complete loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.
Content prepared by Kara Stefan Communications.