Overnight Success

Gary Vaynerchuk, entrepreneur and motivational speaker, recently posted a video about overnight success.  He passionately debunks any notion that most business owners can achieve overnight success…and I agree.  You show me a successful business owner that has perceived “overnight success” and I will show you an entrepreneur that has worked long hours, taken risks, and continued to push forward through adversity.  I see this with successful business owners that are friends, clients, and business partners.  There is a perception of “overnight success”, but what people do not see is the foundation that went into that success.

What Does This Have to do With Investing?

I see a relationship between the actions of an entrepreneur and my clients with wealth.  My clients did not end up with millions in investible assets overnight.  They worked hard, saved money over time, and invested wisely.  The foundation was laid over many years that resulted in success.

It is easy to look at a person driving a Mercedes and ask, “Why does that person deserve to drive that car?”  That is the wrong question.  The right question is “What value does that person bring to others so they can afford that car?”  In much the same way, it is important to ask a similar question to investors with wealth.  “What have they done to save and grow enough money to achieve their goals?”  I have had the opportunity to interview, meet, and work with investors with wealth for almost two decades.  Here are my insights into the key factors of growing investment assets.

Have a Plan

As the late Yogi Berra said, “If you don’t know where you are going, you might not get there.”  Many Americans will spend multiple hours in a year planning a one week vacation, but they will not spend a couple hours a year planning for a 30-year retirement.  Paying a good financial planner and taking time to plan and educate yourself just makes sense.

Investing Fundamentals

There are four basic investing fundamentals that every investor should follow.  Sometimes, these fundamentals are easier said than done.  The four basic fundamentals include building and maintaining an emergency fund, keeping fund expenses low, systematically saving, and diversifying your portfolio.

Don’t Panic

As I write this, we are in the midst of recovering (I use recovering lightly) from the first market correction in four years.  The U.S. stock market typically has a correction (drop of 10% or more) every two years.  This correction was long overdue and an easy argument can be made that this correction was actually healthy.  However, it does not feel healthy when you see a drop in the value of your accounts.  Unfortunately, money is emotional and a feeling of uneasiness is normal.    It is important not to panic in the middle of a downturn.  This is especially true when “Joe from accounting” has just told you by the watercooler that he saw this coming and has been out of the market.  What he won’t tell you is that he has been out of the market for the last three years.  Not only did he avoid a 10% downward correction, but he also missed a huge increase in the three years prior.  Make sure you receive your advice from an expert.   If you have a financial plan with a strategic allocation, don’t panic!

Like any successful business owner, a successful investor has a foundation of success built over many years.  Plan and have the discipline to execute that plan to create wealth over time.

Kevin McNab

This article is written by Kevin J. McNab. Kevin is President of ACE Wealth Partners, LLC and is a CFP®, ChFC®, and CRPC®. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views expressed in this blog post are as of the date of the posting, and are subject to change based on market and other conditions. This blog contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this blog post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants, or attorneys regarding your individual circumstances and needs. No advice may be rendered by ACE Wealth Partners, LLC unless a client service agreement is in place. If you have any questions regarding this Blog Post, please Contact Us. Please read our website DISCLOSURE carefully for additional information.