John Keyes takes a dive into the importance of focus — and specifically, the ability to focus on what you can control to help achieve financial success in this week’s installment of #AskPetersenHastings.
Welcome, my name is John Keyes, Wealth Advisor at Petersen Hastings in Walla Walla.
I play a lot of golf, and over the years, one thing I’ve learned is there are things out of my control.
I remember one time playing Appletree Golf course in high school, I hit a great shot down the middle of the fairway. It was beautiful, right up until it landed on the 150 yd marker, kicked straight left, and ended up in a one foot wide creek.
Back in high school, I let that effect the rest of my round. Today, I’d be a little disappointed, then forget about it. Well, until I needed a good story anyway. I would hit that shot again. It was the right play, something just happened that was out of my control.
I’ve found having this same mindset when investing is also powerful. Focus on the things we can control. Pay attention to, but don’t worry about what’s out of our control.
As an investor what is in our control?
Most important, in my opinion, is our emotions and how we react to market ups and downs. The next is when and how we trade. I don’t mean trying to time the market; I mean trading for a purpose such as rebalancing or tax-loss harvesting. And lastly, how we invest. This includes considering diversification, asset allocation, risks, and costs.
This is a short list of some of the important things we can control. So, what is out of an investor’s control?
Market ups and downs. Headlines. Past and future performance.
What I’ve seen in my years working with clients is that the more investors have focused on the things that are under their control, the more prepared they were for the things that are out of their control. The more prepared they were, the less likely they would make a decision that would be regrettable.
I feel like a large part of the value I provide as a wealth advisor is helping clients get through the tough times. In focusing on things we can control during the good times, we have already prepared for those inevitable downturns.
If you are interested in having a conversation about your personal financial situation, please feel free to reach out to me using the contact information provided below.