LFA Newsletter | What Does Long-Term Investing Mean to You?

July 12, 2023

Investing can be a complex endeavor, but it doesn’t have to be. We believe adopting a long-term perspective is essential for achieving sustainable growth and wealth accumulation over time.

One of the fundamental principles of successful long-term investing is the ability to remain non-emotional and systematic in the decision-making process. Emotions can be powerful and persuasive, but often can lead us astray when it comes to investing.

The fear of missing out (FOMO) when investments are going up or the urge to sell during periods of market downturn can significantly hinder our ability to make rational investment decisions. This is why it is critical to have a plan before these events and stick to that plan through those times.

Being non-emotional in investing means approaching investment opportunities with a clear and objective mindset focused on long-term goals and fundamentals rather than being swayed by short-term market fluctuations or the latest investment fads (cannabis stocks, cryptocurrencies, NFTs, SPACs, and perhaps now AI, just to name a few over last 5 years).

Systematic investing, on the other hand, involves developing a well-defined investment strategy and adhering to it consistently. It entails establishing a set of rules and guidelines for selecting investments, rebalancing portfolios, and managing risk. With such an approach, systematic investing helps minimize guesswork and emotion, enabling us to navigate the often turbulent waters of the market more effectively.

Consider a ship navigating rough seas. The waves may be unpredictable causing the ship to sway. However, an experienced captain remains focused on the ship’s course, relying on their knowledge, navigational instruments, and a long-term perspective to guide them safely to their destination. In the same way a diligent long-term investor remains steadfast in their investment strategy using a disciplined approach to navigating the volatility of the market while pursuing their financial goals.

Market volatility is not an indication of failure or an inherent flaw in long-term investing. In fact, volatility is an integral part of the market’s natural cycle, representing opportunities for those with a long-term perspective. Just as the tides ebb and flow, market trends and economic cycles occur over time. By maintaining a focus on the long term, investors can capture the upward trend and weather the temporary downturns.

So, what is a long-term? How long should investors persevere for? The answer is – until they reach their investing life goals!

As you continue your long-term investing journey to achieving your financial and life goals, it is essential to have a trusted advisor by your side - a dedicated coach who can guide you through the financial landscape. Our mission is to serve you and your family as that financial coach today and for a lifetime. If you love our service, we ask that you please consider sending this email to a friend or loved one that you believe needs a dedicated coach and would benefit from our help.

As always, please reach out to your LFA financial advisor with any questions or concerns.

Your LFA Team,

Steve Van Houten, CFP® | President, Financial Advisor

Brian Field | Financial Advisor

David Mathias, CFP®, MSBA | Financial Advisor

Luke Van Houten, CFP® | Financial Advisor

Zoran Selakovic, MBA, AIF | LPL Financial Advisor

S. Sid Ean, MS | Regional Director

Leah Beltran | Branch Operations Manager

Brenda Barnett | Administrative Associate

Charles Leveson-Gower | Operations Associate

Liliana Li | Operations Associate

Stephanie Peters | Operations Associate

Nicholas Baez, MBA | Operations & Project Associate

LFA puts on several engaging webinars each year. We love to educate and entertain our clients and keep them up to date with the latest trends and topics in the financial industry. Check this page often to see what our next exciting event will be.

Events

With the convenience and security of Account View 2.0, you can access your most up-to-date account information from your desktop, mobile phone, or tablet with just the click of a button or tap of a finger. Click the link below to login or signup.

Each week the LPL Financial Research team assembles thoughtful insight on market news.

To send us a secure file, click the Secure File Upload link below.

The PIN to enter the site is 2244
We receive an email notification when files are uploaded

Secure File Upload

Visit our Website

The financial advisors at Lifetime Financial Advisors are registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC. Financial Planning offered through Lifetime Financial Advisors, Inc., a registered investment advisor and a separate entity from LPL Financial. 07/23 #455852

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. Investing involves risk, including possible loss of principal. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.