BUZ LIVINGSTON: Dow 15,000: So what?

Published: Sunday, May 19, 2013 at 12:24 PM.

If you don’t know where you are headed, any path will do. Learning where your money goes is critical; some expenses are vital and essential while others are non-essential. Budgets bore people, but instead think spending plan, not budget. You can then separate the necessary from the superfluous. We recommend Mint.com or Quicken. Figuring out your needs helps make better financial decisions.

Selling stocks because a group of 30 individual stocks (the Dow Jones average) crossed an arbitrary line (15,000) makes little sense. Keep in mind that adjusted for inflation, a new high requires a close over 20,000. Selling a stock mutual fund to generate a down payment for an office you always wanted, that’s a different story. A buy, hold, and rebalance strategy matched with our goal perfectly and provided superior investing strategy to boot. My wife of 33 years would rather leave it all to our children, but I’m looking forward to my new office in Redfish Village. 

Buz Livingston, certified financial planner has the only investment management firm in the entire world headquartered in Blue Mountain Beach. He helps clients along Florida’s Emerald Coast and around the country with financial decisions. For more information, call 850-267-1068 or visit www.livingstonfinancial.net. Follow his financial tweets @BuzLivingston.


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