Staying Focused on the Big PictureÂ
We all want what money can provide: security, autonomy, control, freedom, a sense of pride and achievement. These personal, long-term goals can be hard to quantify and articulate, so sometimes – like right now – we focus on more tangible, short-term feelings. We might overcome this present bias by knowing that, historically, sticking with a long-term investment vision has provided less volatile and more stable returns.
Still, given the current uncertainty it’s normal to feel a loss of control, unease about our plans and perhaps a desire to react quickly.Â
Here are some things to remember during times like these.
• Remember that using money wisely is the best way to take and retain control of our financial future. That’s why we build financial plans and wealth strategies in the first place.Â
• Think slow. In the heat of the moment, when the pressure is on, we revert to our instinctive, fight-or-flight, highly biased fast thinking, reacting impulsively, with emotion and passion. These fast decisions often undermine our long-term goals. When we think slowly, rationally and idealistically – focusing on our big picture – we act intentionally, with logic and reason.
• Instead of thinking about the next six months or year, think about the next six years or decade. Remember, we’re not investing for ourselves today, but for our future selves and our families many years from now.
• Consider the purpose of your wealth. What do you want your money to do for you? It can be hard to think about, but when we comprehend why we make certain choices, we might be able to reframe our decision-making process to keep us moving along our own personal journey to a richer and more meaningful life.
 Given the current uncertainty it’s normal
to feel a loss of control, unease about our plans and perhaps a desire to react quickly.Â
Rick Barragan is the Managing Director, Los Angeles Market Manager, for J.P. Morgan Private Bank.
[email protected] | (310) 860-3658
privatebank.jpmorgan.com/los-angeles
