Good morning, good afternoon, good evening. Depending on the part of the world you’re in. This is Jonathan Satovsky with a quick update on “Seeking Wisdom, Wealth, and Wellness.” It was reported that the average investor checks their 401(k) balances, according to Vanguard, 25 times a year on their cell phones. This translates to two times a month on average, versus ten times [a year] for those using a computer, [which is] closer to once a month.
Now, if you’re setting a long-term plan and you’re 40 years old, what is going to change in two weeks? Why is the two-week balance [important], does it set your mood? Is it just a habit?
The average 40-year-old should be saving, reportedly at least 8.8% a year, to be able to secure their future. And they sort of need tunnel vision to be able to lock in a plan and just put it on autopilot. Checking [your 401(k)] twice a month leads to the risk of making adjustments based on how you feel at a moment in time. Well, how you feel is irrelevant because if you understand the evidence, and you step back, and you set a plan for the course of 30 – 40 years, there’s no reason to say, “Has it grown yet? Has it grown yet? Has it grown yet? Has it grown yet?” and keep picking up the weeds. It leads to an immense amount of anxiety and mistakes, unnecessarily.
So set a path, set a plan. And you know what? How about sitting down once a year? Once a year, find a trusted advisor. You can sit down, go over everything, flush it all out, and talk about what’s working, what’s not, and how to recalibrate, or not, on your path to Wisdom, Wealth, and Wellness.
Have a great day.
