At the height of hockey season, I was recently reminded of the emotional swings that come with youth sports, both for players and coaches. Leads evaporate, comebacks fall short, and the thrill of a victory is quickly soured by defeat.
The emotional swings experienced by players and coaches are similar to those of investors. For example, one day’s gains are quickly erased by the next day’s pullback, and although we may not be able to prevent every loss in our investment accounts, they can impact our emotions.
How do we fight back and better control our emotions?
Let's look inside my toolbox.
Questions that influence internal reflection are in the toolbox of every coach and Financial Advisor. The four questions I challenge players to answer after every game are:
Did you compete?
Were you a good teammate?
How well did you manage your emotions?
What adjustments did/can you make?
Let's translate these questions and move from the ice to the stock market. As you pursue your long-term retirement goals, consider the following four questions:
Did you research before making a decision?
Are you aligned with your long-term plan and goals?
How well are you managing your emotions?
What adjustments did/can you make?
No one person controls the stock market, and no hockey player can control the actions of all their teammates. Your process and approach are what you can control, not temporary results.
The next time you feel anxious about your retirement account or feel down about fluctuations in the market, ask and answer the four questions above.
Disclaimer: Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.