True Financial

  • Home
  • My Prosperity Login
  • About
    • John Duncan – Fee Only financial planner
    • Fee for Service Financial Planning
    • Our Ideal Client
  • Advice
    • Benefits of Financial Planning
    • Cash Flow Management
    • Superannuation
      • What is Superannuation
      • What is a SMSF
      • Contributions Limits
    • Investments
      • Investment Philosophy
    • Insurance Advice
      • Insure The Stay-at-Home Parent
      • Income Protection Insurance
    • Retirement Planning
    • Estate Planning Advice
    • Business Advice
  • Articles
  • Video Library
  • Testimonials
You are here: Home / Uncategorized / Is the 24 Hour News Cycle Important?

March 23, 2018 by John Duncan

Is the 24 Hour News Cycle Important?

Recently the New York Times profiled a man named Erik Hagerman. A former corporate executive, Mr Hagerman is an average man who lives alone in rural United States. So why was the New York Times so interested in him?

Turns out he’s deliberately ignored the news since 8 November 2016 – the day Donald Trump was elected president. As you might imagine, Mr Hagerman is from the left or progressive side of politics and this is a personal response or silent protest against the election of Donald Trump.

While Mr Hagerman’s story has attracted ridicule from Donald Trump supporters, it’s those on his own political side who’ve heaped on the most scorn. The overriding theme being he’s an out of touch fool with no sense of social responsibility.

Yet Mr Hagerman might be on to something. With news constantly available and no more than a swipe away, too much time can be spent agonising over the latest political or financial titbit that we have absolutely no control over.

Does the latest Trump Whitehouse hiring or firing really matter or affect our daily lives? Does the latest market moving Trump tweet really matter? Especially if the inevitable next day clarification by Trump, or a member of his administration, returns markets to their previous place.

Not that it’s just a news blackout, this point in the story notes how he deals with his finances.

As for money, a financial adviser in San Francisco manages his investments. Mr. Hagerman says he throws away the quarterly updates without reviewing them.

No doubt his financial adviser appreciates his client’s lack of interest in the short term returns, but interest or lack of interest, the outcome is the same. Things don’t change just because they’re given more attention. With an investment portfolio in place someone’s future financial destination will always be the same, whether they check that portfolio monthly or every second year.

Looking back on a financial journey, that becomes even more obvious, as the following chart shows.

Had you invested $100,000 into a 30/70 portfolio (30% cash, bonds/70% equities, listed real estate) in March 2006 it would have grown to $204,149 by February 2018. How you felt about your portfolio, investing in general (and your adviser) throughout that timeframe, may have varied though – depending on how often you checked your balance.

The chart shows monthly movements (jagged line) vs biyearly movements (smooth line) in the same portfolio. Imagine both intervals as check-in points by the portfolio owner. The monthly check-in suffers many falls along the journey, while the biyearly check-in is decidedly free of turbulence.

The month on month check-ins reveal a portfolio consistently in the red during 2008/09, when the financial crisis was in full swing. The biyearly wasn’t checked again until 2010, when it was back in positive territory – so nothing to worry about, right?

The message? The happenings of those 12 years are largely irrelevant. No matter how many things the media told us to worry about, or what information we filled our heads with, it wouldn’t have changed the outcome. The end result for this portfolio would always be the same.

Agonising over the minutia? Pointless. We’ve got lives to lead. Take it from our subject.

“I had been paying attention to the news for decades,” Mr. Hagerman said. “And I never did anything with it.”

“I’m emotionally healthier than I’ve ever felt.”

This represents general information only. Before making any financial or investment decisions, we recommend you consult a financial planner to take into account your personal investment objectives, financial situation and individual needs.

Filed Under: Uncategorized

Keep up to Date

Powered by VMA-Emailer

Meet John Duncan

John Duncan - Financial Planner

Director for True Financial - John Duncan - Fee Only financial planner To receive the best financial planning advice you need the best financial planner. John Duncan is certainly in that category. John is a financial planner who is unique in not only his high level of knowledge and experience in financial planning but also in the amount of areas that John advises in. A Financial Planner with a strong Education background John is a Certified … Read More

Post Categories

  • Budget (5)
  • General (27)
  • Insurance (2)
  • Investment (14)
  • Property (5)
  • Superannuation (4)
  • Tax Tips (7)
  • Uncategorized (49)

Like us on Facebook

Recent Posts

  • Don’t Vote with your Portfolio
  • Investing Has Been Solved
  • John Hussman: Man Who Predicted…
  • Bank Runs
  • What Port in a Storm?

Privacy Statement

See our Privacy Statement here

Keep up to Date

Powered by VMA-Emailer

True Financial is an Authorised Representative No. 428771 and Credit Representative No. 428873 of FYG Planners Pty Ltd, AFSL/ACL No. 224543. ABN 29 009 541 253

Contact Information: Address: 23 Errard St Kelvin Grove 4059 - Phone: (07) 3169 2570 - Email: admin@truefinancial.com.au - Web Design & SEO by: Visual Marketing

Information provided on this website is general in nature and does not constitute financial advice. True Financial Pty Ltd will endeavour to update the website as needed. However, information can change without notice and True Financial Pty Ltd does not guarantee the accuracy of information on the website, including information provided by third parties, at any particular time. Every effort has been made to ensure that the information provided is accurate. Individuals must not rely on this information to make a financial or investment decision. Before making any decision, we recommend you consult a financial planner to take into account your particular investment objectives, financial situation and individual needs.True Financial Pty Ltd does not give any warranty as to the accuracy, reliability or completeness of information which is contained in this website. Except insofar as any liability under statute cannot be excluded, True Financial Pty Ltd, its employees do not accept any liability for any error or omission on this web site or for any resulting loss or damage suffered by the recipient or any other person. Unless otherwise specified, copyright of information provided on this website is owned by True Financial Pty Ltd. You may not alter or modify this information in any way, including the removal of this copyright notice.
Manage Cookie Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
View preferences
{title} {title} {title}