Ok, so we’re one week into the new financial year.
So how did you do last year? Are you 100% happy with the results you achieved in allowing another 12 months to pass? Obviously, looking back over the last financial year there were many events that impacted financial markets.
The benchmark S&P/ASX 200 closed down approximately 4% lower compared to the same time last year.
The Australian Regulatory Prudential Authority (APRA) stepped in late last year, on the back of runaway house prices in Sydney (& to a lesser extent Melbourne) setting tougher new rules around the banks’ Tier 1 Capital Reserve Ratios, leading to stricter lending standards and higher interest rates for investors.
The mining industry had a hard year as commodity prices were smacked off the back of fears of a slowing China, and some genuine oversupply in the oil market. Woolworths steadily lost market share to Coles and Aldi with Woolworths shares falling sharply over the year.
Then to top it all off we had the Brexit, Great Britains’ decision to leave the European Union, which once again sent markets around the world into a quick tailspin. Given that any Brexit is likely to take months, if not years to nut out, we are likely to see markets behave erratically and nervously for some time to come.
So how many of these events either set you back, or propelled you forward, over the year?
You see, the vast majority of investors allow events to determine their investment decisions, and results, throughout the year. What we are seeing right now in the market is plenty of uncertainty. In this environment, some investors will fall back to defensive positions, pouring money into cash (even at low, zero or negative interest rates…go figure) and at the same time, some investors will choose to make hay while the uncertainty shines.
In other words, they react, to the events that pop up throughout the year, often because they don’t have a plan of what it is they want to achieve. They get distracted by the latest economic sound bite, excited by the next shiny bauble, the promise of quick riches, or deterred by every speed bump along the way.
That is not to say we want to put our head in the sand, ignore every market turn and carry on without regard to world events. What I am saying is that for most investors, they do not have a clear map of how they are going to create the financial results that they want in life, and are therefore at the mercy of all the events that may, or may not occur. And to be frank, unless you develop a clear plan, with clear strategic outcomes ahead of time, that is unlikely to change in the years ahead.
So why do most investors NOT have a clear strategic long term plan?
Well having done this for a long time now, I can pretty confidently put the reason into one of two basic categories:
- They either don’t know why they need a strategic long term plan or
- They don’t know how to create a strategic long term plan
And let’s face it, most peoples’ experience with goal setting or strategic planning is usually limited to a short space of time around New Year’s Eve once a year.
I know I never learnt why I should do it, nor how to do it, at school, at home, or in the workforce. I had to go out and spend vast amounts of time and money learning how to successfully turn my dreams into realities. And for those that have attempted it in the past (and most people suck at it by the way), it has often led to frustration or despondency. Sadly over time, without clear guidance, too many people simply give up on their dreams.
Those goals you had for your life, however, don’t just completely disappear, they just become a vague wish lurking somewhere in the back of your mind.
Enough bad news!
Here is the good news!
It does not have to continue to be that way!
Like learning to walk, read, or ride a bike, practical goal setting & strategic planning can be taught.
In fact, if you have never had someone sit down with you to identify clearly where you are in life right now, where you want to be, and how you can bridge the gap in the fastest, safest and most predictable way then today could be the first day of your NEW & IMPROVED LIFE.
So maker a better decision and take an empowered action, call now on (03) 8842 9399 and ask to speak to one of our Senior Mentors.