Stay up to date with our latest news and articles 

Main Office:

151 Kalmus Drive, Suite C-150 

Costa Mesa, CA 92626 
(714) 850-0534 

(714) 850-0934 FAX  

  • Wix Facebook page
  • LinkedIn App Icon
  • Wix Twitter page

Desert Office:

77-564 Country Club Drive #150

Palm Desert, CA 92211

(760) 350-5049

The information in this website is for U.S. residents only. GW Financial, Inc. described in this website is registered only in the United States and the information on this website does not constitute an offer to sell, or a solicitation of an offer to purchase funds either in the United States or to persons outside of the United States. 

 

Content on planretire.com  is protected by applicable copyright laws. No permission is granted to copy, distribute, modify, post or frame any text, graphics, software code, user interface design or logos.

 

ALL CONTENT ON planretire.com IS SUBJECT TO APPLICABLE STATUTES AND REGULATIONS, FURNISHED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT.

 

An investment adviser or IA rep may only transact business in a particular state after licensure or satisfying qualifications requirements of that state, or only if they are excluded or exempted from the state's investment adviser or IA rep requirements, as the case may be. Follow-up or individualized responses to consumers in a particular state by an investment adviser or IA rep that involve either the effecting or attempting to effect transactions in securities or the rendering of personalized investment advice for compensation, as the case may be, shall not be made without first complying with the state's investment adviser or IA rep requirements, or pursuant to an applicable state exemption or exclusion.

 

For information concerning the licensure status or disciplinary history of an investment adviser or IA rep,

a consumer should contact his or her stated securities law administrator.

© Copyright 2019 GW Financial, Inc. All rights reserved.

Privacy Policy

Reaching Your Goals by Driving Safely and Efficiently

March 5, 2018

 

When talking about investment strategy, I could just as easily be talking about the strategy I employ while driving down the highway to arrive at the airport for my flight.  In Southern California, that might involve driving Northbound on I-405 from Orange County to Los Angeles Airport (LAX).


I can’t control the environment (weather, highway traffic density, accidents) but I can control what time I leave the house.  The more time I allot for the journey, the better chance I have of making my flight.  If I don’t allow enough time, I’ll find myself taking more risks to make the flight, such as speeding tickets or accidents.   Using this same analogy for my investments, the more time I allot for my investments to grow, the better chance I have of reaching my goals, safely and stress-free.  By allowing sufficient time, I can avoid taking on more risk hoping for higher investment returns.


Another element in my control on the drive to LAX is dynamic decision-making on choosing which of the 4 highway lanes to drive in.  If I stay in the right-hand lane (aka The Slow Lane) for the whole journey, it will likely take me the longest time.  I may think it’s also the safest lane because I’m travelling the slowest, but in reality there are ever-present risks of merging traffic, slow-reacting trucks, and poor drivers.  The investment “Slow Lane” would be CDs and Bonds, which although slow and steady, they face inflation risk.  The second lane is not much better because cars and trucks will constantly move in and out as they pass traffic from the right lane. My strategy is to drive in the third lane, resisting the urge to repeatedly switch lanes as others look more attractive, and only moving out the lane when confronted with an unexpected accident.  Constantly switching lanes is the riskiest strategy, causing accidents, creating stress, and likely not getting me to my destination any faster.  


With my investments, I also stick to the third lane:  not the slowest, maybe not the fastest, but the safest and surest.  I select a diversified portfolio and stick to my allocations, resisting the urge to switch caused by panic or greed, and only make changes when encountering unexpected roadblocks.
What we’ve done in this little exercise is address the key elements of an Investment Policy Statement.  Whether you have an investment advisor or not, you should be following these three steps:

 

  • Determine how much time you have before needing certain amounts of money

  • Decide which investment allocation lane you want to be in

  • Decide what events will cause you to leave your lane

If you are taking the journey with GW Financial, know that you have a CFP in the seat next to you that gets you into the carpool lane, which gives you the best chance to succeed!
 

Please reload

September 10, 2019

August 5, 2019

Please reload

Recent Posts
Categories