Golden Bells May, 2011
Who Is Atlas?
The classical Greeks believed he was a giant god who literally carried the weight of the world on his shoulders. Ayn Rand, in her book Atlas Shrugged, cast him as capitalists who provide wealth and progress for the world. On whose shoulders does your world rest? The clear answer for most of us is that we are our own Atlases. We shoulder the responsibilities - burdens - for ourselves and our families. If Atlas does shrug, shaking the foundations of the world, how will you come out? In your position as Atlas to your world, you might want to do these two things:
- -Watch two movies: "Atlas Shrugged" and "The Ultimate Gift." (Nobody said this couldn't be fun).
Stress test your money by answering these questions:
What happens when the stock market drops 10% or jumps up 10%? Who is watching for that kind of move and what can or will they do about it? What will you do?
What happens if interest rates start up later this year and don't start back down until 2029 (a typical 17 year cycle)? Do you have any adjustable rate loans? Do you hold long-term bonds, especially Treasuries? How will higher interest rates affect your investments?
What happens to your family if you lose your job?
What if you pass away?
What if gold, oil, real estate or bologna dramatically rises in price?
The key to being an Atlas your family can count on is to think ahead, prepare and lead. All of the questions above can be successfully answered with a little planning.
The stock market, interest rates, and jobs questions can be addressed with sound, professional money management. Most people with 401(k)s can now have professional money management on their retirement accounts. Having money managers watch your account on a daily basis and trade when needed could provide great peace of mind as the financial world gyrates.
A sensible insurance portfolio can answer the other questions. Too much, too little or the wrong kinds of insurance can ruin your best intentions and cost a great deal. A simple insurance review could help you feel good about your coverages.
As for gold and bologna, inflation can be planned for but not avoided. It is a malady that strikes everyone - especially those with large savings accumulated over a long time. We should all consider keeping at least a part of our investable money in assets that would have at least the chance of growing faster than inflation.
Sadly, but clearly, many people don't even constructively think about the future much less plan for it. A financial plan is just that: a plan. Deviation from the plan is almost certain as life happens on a daily basis, but change comes easier to those who plan for it.
More to come...
VIEW OUR GOLDEN BELLS ARCHIVES
What is Different This Time September 2011
Performance Anxiety February 2011
Ball of Confusion October 2010
Into the Storm June 2010
Year 2009
April 2009
March 2009
Year End 2008
Halloween 2008
PryorMcCormick Investments
4000 Southlake Park, Suite 200
Birmingham, AL 35244
Securities and investment advisory services offered through Sterne Agee Financial Services.
Member FINRA/SIPC.
PryorMccormick is not an affiliate of Sterne Agee Financial Services.