A Solid Foundation
Two months ago we broke ground for our new home in Stone Cliff and have been very impatiently waiting for something wonderful to start rising from the dust. Here is a brief recap of the progress so far:
The first two weeks were spent bringing in endless loads of rock and gravel to level the property. During week three we watched as that material was sifted, stacked, pushed and compacted. Week four the excavator had some machine that chipped and pounded as it slowly, very slowly, dug part of our basement. It was during this time that we learned they had a good reason for naming it "Stone" Cliff.
In week five we were sure we would see the walls begin to rise, but instead it was just more of the same. Tired and impatient we left town for a week only to return to, you guessed it, more compacting and spreading.
After six weeks of constant work, yet with no real apparent progress, I began to wonder if we would ever see our beautiful home built. I shared my frustration with my builder. He kindly explained to me that the most important part of any home is the foundation, and that if the foundation is not solid, what we put on top of it will not matter. He told me that we must take time to get the foundation right, because it is the one thing that cannot be fixed later on.
After our meeting I was thankful he hadn't given in to my constant pressure to get things moving along. They were moving along. In my ignorance, I just couldn't see it.
Sometimes the most important things in investing are the things you can't see. Most people know what their positions are worth. Many can even tell you how many pennies their accounts move each day. But for the most part, this is not what is important.
What matters is whether your portfolio sits on a solid foundation. Have you made good long term decisions or are you swayed by the current fads and winds of the day? When you choose investments are you impressed by the pretty brochures, or do you dig beneath the surface to see that the company has solid footings? Past experience shows that many beautiful companies were standing in the sand.
In the long term I am very optimistic about our nation’s economy and our local economy as well. That is, by the way, why I am building a new home. It represents my vote of confidence. But being an election year, the short term markets will likely bring a good deal of volatility. When the election year winds blow and Wall Street shakes, you will sleep much better if you have taken the time to anchor your financial home to a strong foundation. The rocks of Stone Cliff were here long before we were, and will be here long after we are gone. A good foundation for your portfolio should have much the same qualities.
Dan Wyson, CFP® is author of the book “21 Financial Myths” and owner of Wyson Financial. 1173 S. 250 W #505 St. George, UT 84770 - 435-986-9525 – Securities and Advisory services offered through Commonwealth Financial Network, member FINRA/SIPC, a registered investment advisor