When Yogi Berra died on Tuesday, September 23, 2015, it was sports fans that mourned his passing. Even though he was a member of the “Evil Empire” credit must be given where credit is due – not only was Yogi Berra one of baseball’s greatest catchers he was a true gentleman.
Known as one of the best New York Yankees of all time, with 18 All-Star and 14 World Series appearances (in which the Yankees won 10 of them), it was his legendary quotes that he might be most remembered for.
Here are some Yogisms and what they can teach us about financial planning:
It’s like déjà vu all over again.
Too many times we see investors make the same mistakes over and over again. Whether they have short-term memory loss or whether they did not realize they made a mistake the first time, these investors need help to do things a better way.
When you come to a fork in the road, take it.
We do not always know which direction we are heading, so it is good to prepare for the best and worst outcomes. Life is going to throw us curve balls. It is good to be prepared, just in case.
No one goes there nowadays, it’s too crowded.
A common investor mistake is chasing the hot preforming asset class. As history has shown, what is hot today is not likely to last for many consecutive years, if any at all. That is why investors need to be diversified.
Why buy good luggage, you only use it when you travel.
There are times when we want things (whether is jewelry, a new car, a second house or something else), but we don’t need them. Having a financial plan, staying disciplined and living within your means are the keys to a happy retirement and possibly passing on asset to your heirs.
It ain’t over till it’s over.
Human beings are living longer and with medical advancements, some think we might eventually live to 150 years of age. Whether that is true or not, we need to plan for the possibility of having more years in retirement.
Slump? I ain’t in no slump… I just ain’t hitting.
Investors often cannot let go of an underperforming stock, but sometimes it is ok to take a loss. This allows the money to be better reallocated in a portfolio and can help net out capital gains when it comes to tax time.
It was impossible to get a conversation going, everybody was talking too much.
There is a lot of noise out there: new investment fads, media outlets trying to create panicked investors to get ratings, so-called experts with no credibility and much more. It is important to have a reliable source for good information to make key fundamental decisions about your financial future.
Never answer an anonymous letter.
Make sure you are taking precautions with your financial assets. There are many bad people out there that are constantly trying to hack computers and deceive investors out of their hard-earned money.
A nickel ain’t worth a dime anymore.
We have been living in an unprecedented period of low inflation. At some point the Federal Reserve is going to change their policy and investors need to have a portfolio that is prepared for a rising interest rate environment.
The future ain’t what it used to be.
Common disclosure in the investment industry is related to past performance is no guarantee of future results. Just like change is ever constant in our lives, it is also true in the world of investing.
I usually take a two-hour nap from one to four.
Don’t be asleep at the switch. There is a time when hiring a financial advisor to keep an eye on your financial plan makes great sense.
Barbara Shapiro is the President of HMS Financial Group located in Dedham, Massachusetts. She is a CFP®, Certified Divorce Financial Analyst, a Registered Investment Advisor and a member of the FPA Massachusetts. Her firm specializes in comprehensive financial planning with a subspecialty in divorce that assists clients’ transition from marriage to independence with peace of mind and confidence. Learn more at HMS-Financial.com.