If you have been following our radio show or reading our articles, you have seen or heard me say…Today is the first day of the rest of your life—so how long is that going to be? 50 years, 40 years, 30, 20? When I write, I have a tendency to say out loud what I am typing. Ironically, the response I just received after reading that question aloud was the perfect segue to the point of my commentary today: The lovely lady sitting in the room just said, “Before my Dad died, he affirmed that had he known he would have lived that long he would have done things a lot different.”

Think about your life today for just a minute… now imagine yourself in your late 80’s or even 90’s. Would the decisions you make today look different from that vantage point?

At our monthly dinner in Abilene last Thursday, Aaron gave an insightful market commentary regarding the panic that is occurring in the markets right now. He gave this analogy: Suppose I was late to work one morning. When I got to the railroad tracks the crossbars were down and the lights were flashing. Instead of waiting, I tried to outrun the train. This one decision could drastically change my future. Would I get to see my children graduate? Would I be able to dance at their weddings? Would I be here to hold my grandchildren?

It is not necessarily the panicked feeling that you need to get out of the market that can drastically change your future, or even taking your money out of the market… it’s knowing when to put your money back in. Over 81 years (from January 3, 1928- March 31, 2009), a $1 investment would have grown to $45.18 by staying invested in the S&P 500 through the entire period.  However, if the investor missed the 10 best days in last 81 years, that $1 would only be worth $14.99, only a 1/3 of what could have been.^1. To put this into perspective, just imagine that panic caused you to miss the 10 best days to be invested in your lifetime, producing those same results. If your retirement was cut by 2/3, would that change your life?

Market volatility is a normal part of investing, and the only bad news is that it will probably continue to get worse throughout your lifetime. Unlike 10 or 20 years ago, trading is done with the click of a button today and news travels a million times faster. The result? Technology + Human Emotion = Extreme Volatility.

There is no doubt our country has problems. As do many other countries today. There is no doubt there is uncertainty about our economy, our markets and the near future. However, we can’t stay near-sighted or else it could severely cripple our long-term future.

Just imagine where technology will be in 20 years, or even 10 years. And what about the global economy? What about the fact that over 100,000 families are going from low-class to middle-class every single day?

Wayne Dyer said, “You cannot always control what goes on outside. But you can always control what goes on inside.” We will always live in interesting times. It is sticking to our disciplines that will allow us to make the most of it. Remember today is the first day of the rest of your life. Plan for it!

1. Invesco. (2009). Rethinking Risk. Invesco Aim Portfolio Principles

Please keep in mind past performance is not indicative of future performance. You cannot invest directly into the S&P 500 index. Kennedy Financial Services, Eastland, TX. Securities & Advisory Services offered through VSR Financial Services, Inc., a Registered Investment Adviser and Member FINRA/SIPC. Kennedy Financial Services is independent of VSR Financial Services, Inc.