Mar 25th, 2008
Stick to the Plan!
CNN’s Money.com ran an article in Walter Updegrave’s “Ask the Expert” series last week called, “Avoid the market carnage: Stick to the plan”, which was an answer to a reader question on whether to adjust a portfolio according to an existing plan or waiting until the market rebounds–the assumption by Updegrave is that the author was asking about rebalancing the asset allocation in a portfolio and the answer was largely around that.
However, whether that was the case or not, the message delivered by Updegrave was loud, clear, and rang true:
Stick to the plan!
If your investing plan was sound to begin with–and the best ones are not just simple, but sound–there’s no reason to change. Diversify. Asset allocate. Dollar cost average. Take advantage of any employer assistance and tax breaks you can. Keep your costs low. The only time to change the plan is if your plan wasn’t sound in the first place; if it was, then just follow your plan. Be smart, don’t let your emotions get the best of you, be patient, and stick to the plan! Good planning, discipline, and patience is rewarded.
[...] Suenaga from Uncommon Cents presents Stick to the Plan!, and says, “If you have an investing plan, stick to [...]