When Do I Get Out?



BY JON MARZANO, AIF®, Founding Partner, Managing Principal

I had a meaningful conversation with some great guys from Yadkin County the other day.  Their company has been doing a little work for my wife and me on some land we purchased last year.  The land is what we hope to be a great place to relax and enjoy some of our empty nesting years.  After talking about all my thoughts and plans for this farm with my new friends, the topic turned to an IRA account that one of the guys, Kevin, has.  Kevin said he has had the IRA for years.  It started at First Union, went to Wachovia and then, well we know how that story goes… However, the conversation did not end up being about the bank he bought this investment from.  The conversation ended up being the all-too-common conversation with the do-it-yourself investor, “When do I get out?”

I could not help but jump right in with my thoughts.  As financial advisors, we are always looking to pick up new clients and I have learned that farmers are some of the best people to work for.  Farmers understand risk – their whole livelihood and the profession of farming is riskier than many other professions.  My response to Kevin was that there should never be a question of when to get in and when to get out.  The question carries too much emotion and that can be reduced substantially.  At Marzano Capital Group, we advocate for the process of trimming gains on things that are doing well and reinvesting those gains back into things that have either 1) not done so well recently or 2) into more conscious investments where you are not taking the same level of risk.  Most investors are nervous about any number of things that are going on around the world.  Right now, that list includes: the resurgence of the Covid, Afghanistan, fires around the world, political and economic stability – the list goes on and on.  There are plenty of reasons to be scared, but do not let emotions alone drive your decisions on investments.

Investing should not be an “in or out” decision, it should be a process.  Processes tend to minimize emotions and if you can do that, you could have a better experience along the way.

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through Independent Advisor Alliance, a registered investment advisor, Independent Advisor Alliance and Marzano Capital Group are separate entities from LPL Financial.

 

 


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