This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Investors are experiencing slight relief as markets experience some recovery, but with that being said, you also might wonder: How long will this last? And, should you cash in while you’re up?READ THE ARTICLE
Mochi and the markets: Amidst an abnormal economic climate, investment decisions this year haven’t been easy. However, before you strike while the iron is hot, author Rubin Miller advises taking a lesson from a 1,000-year-old mochi store. To survive this amount of time, the Japanese business focuses on not only profit, but having a higher purpose: Serving travelers the best mochi (ice cream-like, rice cake dessert), and nothing else. For a millennium they’ve made it a point to know who they are, and only pursue activities in support of their one mission (mochi).
Be a patient investor: This same ideology could be applied to your portfolio. Does your portfolio know what its mission is? While for the short-term, it might feel good to cash in and save yourself some money, what if over the long-term those losses are more than made up? This is why it’s important, as the manager of your portfolio, to do one thing very well: “...Be a methodical implementer of a predesigned plan.” This isn’t to say cashing in is unwise, but as Rubin says, “When you focus on doing one thing really well, you won't make mistakes dallying in other things that don't add value.”
Always remember: Having a framework for your financial decisions will greatly increase your odds of reaching your long-term goals.