How to Have a Sound Financial Plan and Stay Invested for the Long Haul

“Even the Roman Empire took 400 years to fall. I assume your investment horizon is a little shorter than that.”

So said my colleague, Alexander Green, at The Oxford Club’s recent Private Wealth Seminar in Costa Rica.

His words were a warning shot to any investors listening to the investment doom-and-gloomers out there, busily predicting the end of the world.

Alex was driving home a point that we’ve made countless times here at Investment U: Markets rise and fall, and trying to time them is an act in futility.

So what should you do instead? Simple. Have a sound financial plan and stay invested for the long haul.

And the best route to success? See below…

Concerned? Let History Ease Your Worries

Alex’s discussion got me thinking about the woes of the past few years and how people are having a tough time envisioning a meaningful recovery.

I won’t rehash the myriad problems and ugly statistics here. You know what they are by now.

What I will say, though, is that while the climate is undoubtedly tough, is it really so different from previous downturns?

I’m not talking about the epic crashes of 1929 and 1987… everyone’s done that. Rather, I’m referring to lesser-known crises. Why? Because while they caused a similar level of panic that we’ve seen today, they not only worked themselves out… but the economy actually prospered afterwards.

For example…

How Silver and a Railroad Collapse Triggered the Crash of 1873

Heard of the Panic of 1873?

A worldwide depression was triggered when Germany stopped minting silver thaler coins, used in Europe for over 350 years. The decision sparked a drop in silver demand and set off a ripple effect… (more)