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RFM Financial Solutions, LLC

All posts tagged investments

Respect the price action but never defer to it.
Our eyes are valuable tools when trading but if we deferred to the flickering ticks, stocks would be “better” up and “worse” down and that’s a losing proposition.

Discipline trumps conviction.
No matter how strongly you feel on a given position, you must defer to the principles of discipline when trading. Always attempt to define your risk and never believe that you’re smarter than the market.

Opportunities are made up easier than losses.
It’s not necessary to play every day; it’s only necessary to have a high winning percentage on the trades you choose to make. Sometimes the ability not to trade is as important as trading ability.

Emotion is the enemy when trading.
Emotional decisions have a way of coming back to haunt you. If you’re personally attached to a position, your decision making process will be flawed. Take a deep breath before risking your hard earned coin.

Zig when others Zag.
Sell hope, buy despair and take the other side of emotional disconnects (in the context of controlled risk). If you can’t find the sheep in the herd, chances are that you’re it.

Adapt your style to the market.
Different investment approaches are warranted at different junctures and applying the right methodology is half the battle. Identify your time horizon and employ a risk profile that allows the market to work for you.

Maximize your reward relative to your risk.
If you’re patient and pick your spots, edges will emerge that provide an advantageous risk/reward profile. Proactive patience is a virtue.

Perception is reality in the marketplace.
Identifying the prevalent psychology is a necessary process when trading. It’s not “what is,” it’s what’s perceived to be that dictates supply and demand.

When unsure, trade “in between.”
Your risk profile should always be an extension of your thought process. If you’re unsure, trade smaller until your identify your comfort zone.

Don’t let your bad trades turn into investments.
Rationalization has no place in trading. If you put a position on for a catalyst and it passes, take the risk off—win, lose or draw.

By: Todd Harrison


So you set up your retirement plan say ten or 15 years ago, it’s time for a checkup!  The sooner you can make adjustments the better, especially if you are going to have to make some big changes in your plan.  One important factor is we are living longer.  Twenty years ago statistics said the average male could expect to live to age 80 and the average female to age 85.  In recent studies, these numbers are age 88 for males and 90 for females.  Now these are just averages, a good source which allows you to enter personal variables is livingto100.com.  One you have a better idea of your life expectancy, you can calulate how long your savings might last and determine if you will fall short. 

If there is a shortfall, then a thorough look at your portfolio is in order next.  Maybe your being too conservative for your portfolio to last the additional time.  That being said, we are not encouraging our clients to run out and load up on risky investments, but rather take a pro-active approach and find the right funds for your needs.  If it looks as if you are going to be extremely short of your needs, you may have to consider downsizing to a smaller home or taking a reverse mortgage to compensate for the shortfall.

Another item to look at is your spending habits.  You may have set up a budget at the beginning of your retirement, but ten or 15 years later, you have a much better idea of how much money you need.  It is a good reality check for people to keep tabs on what they are spending their money on.  Many people do not realize the money that is being spent on ATM fees and small items such as coffee or entertainment.

If things become tight and keeping up with your premiums for long-term-care insurance or any other insurance for that matter is becoming a problem, you may want to ask your children to help out.  It would be more economical for your children to help you pay the premiums than to allow the coverage to lapse.

Contact us today if it is time for a review of your retirement plan.