Dan works at a technology company. He loves the tech business. From the opportunity to change the way we live, to seeing what’s coming next, to the generous compensation. There’s no other business he’d rather work in. And he believes it gives him an edge in understanding which technology stocks he should buy. After all, he’s spent his life developing deep technical knowledge that most people cannot match.
Katherine was a great saver. She always made sure that she put her maximum annual 401(k) contribution of $18,500 away during her entire 45-year career. She wanted to earn the most she could in the account, so she invested it all in equity funds. Given she didn’t really pay much attention to the account, the ups and downs of the market didn’t bother her. After all, she didn’t plan on touching the account until she’d stopped working. She retired with $5.3 million after earning an average 7% return.
I was sitting next to Jim recently at a dinner party. Our conversation started around the usual topics. He works in biotechnology research and asked what I do for a living. I replied that I help my clients avail themselves of all that the capital markets, tax code, and estate rules offer in the pursuit of the life they want for themselves and their families. “You’re a financial advisor then!” “Sort of” I said. “I actually prefer the label wealth management advisor, because we address the full range of planning needs for our clients, rather than just focus on financial products”. “Got it” he said. I could see his mind turning.
Dan doesn’t like to waste time. He’s always multi-tasking to get as much done in a day as he can. It’s just as well, because his job in technology has him in perpetual motion. He wouldn’t have it any other way. Dan likes to be active with his investing too. He’s always assumed that he can pick when to get in and when to get out of the equity market. But recently he’s started to doubt that he’s been doing the right thing.