Mel Abraham explains how a personalized financial plan keeps you calm when markets drop. Define your assets, liquidity needs, and risk tolerance, then stress-test it so you have cash for downturns and can spot opportunities. Without a plan, emotions wreck your decisions.
Be investing in these other assets, or should I be in gold, or should I be in crypto, or should I be— the key is this: you have a financial plan in place. That financial plan has a structure to it— the kind of assets, the kind of investments, the, the liquidity, the holding period, the, the risk structure, all of it. It has all of that embedded into it. And it is— it should be embedded into it based on your unique circumstances. My situation versus your situation is very different, so no two are going to be alike. In fact, I have an identical twin. His situation is different than mine, even though we're identical twins. And what we need to do is follow the plan. And if it's done right and it's stress tested and we really understand that, then it is, it is prepared for a downturn in the market, for the volatility, for the economic cycles, because you have the liquidity to carry you during the downturns. You have the liquidity to take advantage of the upswings. All that should be built in. Now, if you don't have the proper plan, if you don't have the proper structure, if you don't have the proper guidance, and what's guiding you is your emotional response to what's going on, We got a problem because when our emotions go up, our financial intellect goes down. If we make financial or money or wealth decisions emotionally, they're typically not good.
