Ernie Vorpahl, Certified Financial PLANNERtm

09/02/2024

What does it mean to be a long-term investor? It might seem like an ironic place to start, but the first step to being a long-term investor is to mentally and financially prepare yourself for short-term market disruption.

Short-term investors look at the daily market and what is happening at any given moment, successful investors understand that time is their greatest advantage because it’s what allows all the short-term uncertainties to work themselves out.

This is why it is so important to work with someone who will regularly review and plan for your near-term lump-sum and income needs.

08/05/2024

Start investing NOW.

07/26/2024

💡Acting on forecasting is the introduction of risk to your financial plan rather than avoidance of it.

In the long term, it seems likely that the markets will generally follow earnings just as they've done for the last century. But in the short run, anything can happen.

Thus, consider this your bi-annual reminder that as confident as these forecasters and pundits sound by offering lots of compelling evidence for their thoughts, it doesn't mean they have any idea what will happen next.

Nobody does. It's why we plan.

07/15/2024

Time in the market is better than trying to time the market ⏰

06/24/2024

Investments are a long-term game📈

06/03/2024

Calculated risk can lead to calculated returns 💯

05/24/2024

Foundationally, there are two levels of decisions in which investors might introduce risk to their financial plans. The first is at the planning level (long-term, strategic decisions) and the second is at the behavioral level (short-term, tactical decisions).

At the planning level, portfolio decisions that introduce risk are often counterintuitive and surprising. One example of this is being "conservative" in your planning.At first glance, being traditionally conservative might seem prudent. The problem, however, is that this strategy is likely to produce a lower long-term return, and the obvious result of a lower long-term return is a lower probability of attaining their financial goals.

Let's discuss the behavioral ways risk may be introduced. Here are just a few examples to consider:
➡️Selling out of a bear market due to fear.
➡️Buying into the fads of the moment.
➡️Chasing the best-performing stocks or funds.
➡️Acting on market forecasts.

A simple remedy for behavioral risk? Stay the course.

05/13/2024

Keep your mind focused on your goals and the long-term, don't let your emotions get in the way of your investments.

04/22/2024

While equities have higher risk, they also yield a much higher return.

04/01/2024

Consistent patience leads to consistent value.

03/14/2024

The Thing About Volatility–

Volatility is nothing more than price fluctuations around a trendline. Clearly, this could be negative OR positive.

if the market did nothing but move in a straight line "up and to the right," there would be no risk. And where there is no risk, there is probably no return.

Think about it:
CASH: Has essentially zero volatility and thus, it offers virtually zero return after accounting for inflation
BONDS: More volatile than cash and have returned more after inflation to the tune of about 2.5% per year since 1950, but not something to pin your hopes for a prosperous future.
EQUITIES: Have been the most volatile, but they have also offered the best return by a wide margin.

In other words, after accounting for inflation, equities returned more than 3X the return of bonds. That’s the value of volatility.
When looking at the span of history, it’s easy to see the connection between volatility and returns. They’re virtually inseparable.

01/26/2024

www.AskErnieV.com

Financial Advisor | East Hampton, NY