Financial Advisor in Utah, Mark K. Lund, Presents The Effective Investor Newsletter, September 19, 2022

The difference between planning ahead and worrying ahead

When was the last time you watched the entire safety demonstration by an airline cabin crew?

If you’ve traveled enough, you could probably stand up and give most of the presentation yourself.
Using props like a seatbelt, an oxygen mask, and a lifejacket, the attendants talk about everything that could go wrong during the flight: excessive turbulence, loss of cabin pressure, even a crash landing in water.

No wonder so many passengers would rather flip through the in-flight magazine than pay attention to the required instructions.
But the purpose of the presentation isn’t to get you thinking about all the bad things that could happen once you’re in the air. It’s to give you a plan of action in case any of these highly unlikely things do happen. Flying on a commercial airline is statistically much safer than driving.1 In fact, it’s been pointed out that you’re in far more danger taking your car to the airport than taking off in your plane.

Flight attendants are also aware of this fact. Despite repeating their litany of emergencies over and over, they are cheerful and relaxed. Their own experience also tells them that air disasters are very rare. And if there is a problem, having a specific plan for addressing it brings peace of mind.

The Stoic philosopher Seneca said, “We suffer more in imagination than in reality.”2 His contention was that when we spend time worrying about a possible problem, we suffer more than if we were actually experiencing the problem.

This kind of “borrowing trouble” can be especially easy when thinking about your financial future. There are an unlimited number of things that could possibly go wrong as you work toward your fully funded retirement. If you meditate on any one of them, imagining it progressing to the worst possible outcome, you can really make yourself suffer unnecessarily.

Seneca didn’t believe in irrational optimism. He said that bad things can and do happen. But, he advised, instead of using that knowledge to torture ourselves, we should use it to prepare ourselves—just like the flight attendants. Then we can face possible problems realistically and with a plan.

In the same way, you can have more peace of mind about your finances when you first, learn which risks are most likely, and second, have a plan that takes those risks into account. If challenges do arise—and they are bound to—you’re prepared to address them, eliminating the need for panic or worry.

Your trusted financial advisor is a valued ally in maintaining your peace of mind. He or she can help you refine a plan that contemplates your unique situation, including the risks you’re likely to face, and then help you deal with challenges in ways to lessen your worry.

If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.

Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020

Sources:
1. http://go.pardot.com/e/91522/vel-safer-car-travel-1581-html/7t9rgc/1625034412?h=6YFB4guf8fyg1nQrl1-uu_wGz6XacdIo_VVH3cokdvo
2. http://go.pardot.com/e/91522/dont-borrow-suffering-/7t9rgg/1625034412?h=6YFB4guf8fyg1nQrl1-uu_wGz6XacdIo_VVH3cokdvo
This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Advisor, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Fiduciary Report. Cities served in Utah are: Salt Lake County, Utah County, Park City, Salt Lake City, Murray, West Jordan, Sandy, Draper, South Jordan, Provo, Orem, Lehi, Highland, Alpine, American Fork. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.

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