March 31, 2014

Greetings! I trust that this will find you well and enjoying life.

Carl Richards is a financial writer known for depicting financial illustrations with nothing more than a Sharpie. Like a cartoonist, he’s able to capture financial notions, behaviors and logistics with a few simple swipes of a heavy-handed pen. He is also a regular contributor to The New York Times.

Richards believes successful financial management does not result from skill, but from our personal behaviors. He also believes that this fundamental knowledge can help people manage their budgets and financial assets more effectively because we can adapt our behaviors quicker than we can develop our financial skills. And unlike the financial markets, we can control our own behavior.

In light of this approach to financial management, Richards recently penned an article for The New York Times that recaps the most important lessons learned from 2013. They are:

1. What goes up will go down like gold prices.
2. What goes down will go up like real estate values
3. Looking for bubbles isn’t an investment strategy.
4. Past performance does not predict future results.
5. Buying high and selling low still doesn’t make sense although it may be difficult to resist when the stock market is doing well.
6. Crises come and go the world didn’t come to an end when the U.S. government shut down last year.

The important thing to remember is that most everything moves in cycles the markets, interest rates, inflation and even the ebb and flow of personal triumphs and tragedies in our own lives. Whenever you or your financial situation hits a snag it’s a good thing to remember this too shall pass.

If you have questions about this information or I can help in any way with any financial issue don’t hesitate to call.

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