Nothing Like A Crisis To Help Reset Your Goals (or Get Them Started)

https://www.nytimes.com/interactive/2020/04/11/business/economy/coronavirus-us-economy-spending.html

Not sure if this really fits exactly, but in some way we are likely all having to endure the Five Stages Of Loss as we progress through the lock-down: loss of some income, perhaps, temporary loss of employment, hopefully not the loss of a loved one. Closer to my world, maybe loss by way of the decline in value of your investment portfolio and / or your net worth. The latter is what we classify as an "unrealized loss", i.e. if you don't need to sell and don't, that loss may, over a longer period of time resolve itself. However, it doesn't mean that, if you have looked at the value of your portfolio, you didn't experience that nausea and light-headedness that comes with a shock (especially back in late March as the markets hit bottom):

1) Denial : I am amazed by some of the other blogger / journalist / advice giver (and cheerleader) responses to the initial shock (and I have heard and read a lot). Likely because it is not their future that has just become a big blur (or maybe it is?). Not so much empathy and a heck of a lot of finger pointing at all the other influences (other than bad portfolio management choices prior to the coronavirus crash).

2) Anger: Certainly many of us have seen portfolio melt-down's in the past (2008-09), but when you are 11 years further on the path to your retirement and the folks that look after your money have not taken that into consideration (one size fits all?) and your portfolio is down 20% (fortunately not the experience for High Rock Private Clients with tailored portfolios), one might be permitted to be a wee bit frustrated with the lack of attention to your detail.

3) Bargaining (struggling to find meaning): who has not had that "why do I even bother" thought cross their minds? Or the other one: "I could have just stuck my money in a GIC". It is never easy to learn that our risk tolerance is not quite what we thought it might be when we see a 20% decline in our portfolios in a 2 week period. 

4) Depression: It can truly be emotionally exhausting and debilitating if you see your future vanishing before your eyes (even if it is not, really): "I guess I will just have to wait it out and hope for something better" type thinking. Clearly not a happy time. Many of us are filled with a certain paralysis (helplessness), not feeling up to doing anything to get some forward momentum.

5) Acceptance: Finally, perhaps with counselling and / or coaching, there comes some hope. If you have a plan, perhaps it becomes time to re-visit and adjust it (time horizons, risk tolerance and re-balancing). If you don't have a plan, maybe time to get on it.

First, set / adjust your (new) goals. Studies show that people who set goals accomplish more, achieve greater success and accumulate greater wealth than people who don't.

Goal setting is a job. It takes time and effort. For some, goal setting can be threatening. For me, I find it inspiring: I have a target to shoot for and can adjust my behaviours to align them with the things I need to do to get to my goals.

Always ask yourself: "is what I am doing right now moving me closer to or farther away from my goals?"

As my coach (Greg Wood at Sandler Training) implores me: set your goals out on a "life line" with key dates and accomplishments. At High Rock we set our financial goals out in a Wealth Forecast, which projects out to the (estimated) end of our time here on this planet and we follow them and monitor them and adjust strategy as is required. 

Certainly, given all that is happening now and the likelihood of a whole new "normal" in the future, there is no time like the present to get your goals and the strategy required adjusted to achieve them, in order.

Where do you want to be in 10 years? 20 years? 30 years? or more. 

"One final thought: Some people struggle with committing to their goals and writing them down because they fear failure or success, or they fear that their goals may change. Those feelings are normal, but they should not stop you from completing your lifestyle design. Just because you write it down today doesn't mean you can't change it tomorrow, should a better option come along or you change your mind. However, not having a plan is the surest path to failure." (Sandler Training)

Plan to succeed!