Speaker Recap:  Connor G. Jarvis, CFP®

 
Here is a summary of his presentation:
 
Connor G. Jarvis, CFP® (Partner, Wright LaHaie Jarvis Wealth Advisors) spoke to our club on Key Principles for Long-Term Planning & Investment Success:
 
- Focus on what you can fully control (or partly control), not what is out of your control.  Thankfully, the things that we do have control over are what ultimately matters most to a successful long-term plan.
  • Full Control:
    • Prudent asset allocation, diversification, and risk management
    • Appropriate rates of current and future savings/spending
    • Developing a goals-driven plan with an investment strategy designed to support the various goals and objectives (short-term, intermediate-term, or long-term)
       
  • Partial Control:
    • Length of employment
    • Employment earnings
    • Longevity/health
       
  • No Control:
    • Market returns from one day, week, month, or year to the next
      • Economic environment
      • Political environment
      • Tax environment
      • Policy implementations or changes that impact any of the above
- Plan to live a long time and have an income plan that supports the longevity needs and concerns of a modern retirement - for couples age 65 and over, there is now at least a 50% chance one of them lives into their 90s.
 
- Cash in not always king – attractive high-yields/interest rates in the short-term can be a long-term trap.
 
- Strive to take full advantage of the power of compounding growth (dividends, interest, etc.) over time – and be consistent.
 
- Don’t let cognitive biases and emotions distort your vision and cause you to deviate from a well-built strategy and plan (assuming one is in place) – heuristics often work against us when it comes to behaviors, habits, and decisions that can lead to long-term financial success.
 
- Volatility is normal and to be expected as an investor;  in times of market and portfolio stress, rash actions and emotional decisions do not typically produce fruitful results beyond short-term psychological comfort – maintain composure, review and remember your plan, and (like a horse running a race) keep your “blinders” on to stay focused on the long-term goal ahead – not what the media is say or market/economy is doing on any given day/week/month/year.  While past performance is no indication nor guarantee of future results, historical perspective can be impactful in helping one to stay the course in times of heightened fear or turbulence.
 
- Diversification works over time and it is a critical component of a well-constructed investment strategy designed to support a well-crafted plan – this diversification across and within asset classes, but also diversification across account types, etc.
 
- Time in the markets, not timing the markets, is what matters most – staying invested is key.
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