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From: Robert A. Christy
Editor/Publisher, ‘The Intelligent
Trader’
http://www.intelligent-trader.com
http://www.christyinvestments.com
Date: October 21, 2008
Hey everyone:
The market’s recent drop has left everyone misty eyed and shaken to the
core. Anyone who says so differently either has their money stuffed in
mattresses, buried in their backyard or gets the bulk of their news from
MTV.
I think the fastest way to get back on track is to get back to basics.
Not just the basics of investing, but back to the reasons that we invest
in the first place.
I am a Professional Stock and Currency TRADER. I am not a long term
investor. As such, I question everything. I mean everything. When it
comes to the proverbial glass of water: I don’t see it as half full - I
do see it as half empty AND I want to know where the other half went.
This healthy skepticism has served me well and is one of my endearing
qualities.
For the record:
1. I was born at night, NOT last night.
2. I think the drivel that is served up as “financial planning” is a lot
of bunk.
3. Life is complicated and you need a map to get from one place to the
next.
4. Does financial planning have a place in life? Yes – without a doubt.
5. What I don't like is how financial planning is packaged and sold.
6. I don't like boilerplate and the back-end nonsense.
7. I believe that the “planners” should plan and leave the investments
to others.
8. I think there's a HUGE and FATAL conflict of interest when a
financial planner creates and completes a plan for a client and then
gets PAID to implement the plan. And vice versa. I’ve been doing this
along time and I can say from the basis of fact that anyone who puts
together a plan and then implements it is doing you a HUGE disservice.
Financial Planning means different things to different people. When you
strip away all of the boilerplate, it really boils to this:
In order to be successful as an investor or trader, you must have your
house in order. Given what has transpired over the past few weeks - is
your house in order?
The 7 Most Important Questions that You Will Ever Answer
1. Do you know exactly what would happen to your family if you didn’t
wake up tomorrow?
2. Do you know exactly what would happen to your family financially if
you became disabled and could no longer work?
3. Who will you need to, or just want to help, educate? When? And do you
have your arms around what it will cost to do so?
4. How and when do you see yourself retiring? What will you do, and what
will it cost to do it – not just the day after you retire, but 10-20 and
even 30 years later?
5. Are you parents living? If so, will you be expected to contribute to
their support at some point? And have you made any provision for the
possibility that you may need nursing home or other care, late in your
own life?
6. How important is it to you to be able to intervene in the financial
lives of your children and grandchildren – while your still here, as
legacies, or both? How do you plan to do it?
7. Assuming, as we have to do, that when you’re both gone, up to half
your estate will get taxed away, how do you want the tax to be paid? If
you want the kids to just pay the half, will they be forced to sell
something you really wouldn’t want them to have to sell?
8. Heaven forbid, but is there a special needs child in your family?
ACTION STEPS
Before you worry about whether or not the stock market is going up
tomorrow, take a few minutes and answer the above questions.
1. Get a notebook, paper and some dividers
2. Each question has it own section in the notebook
3. Sit down by yourself and answer all of the questions. Make notes, jot
down your thoughts. Keep in mind that there no right and wrong answers.
This exercise is a continuous work in progress so speed is not of the
essence.
When I did this exercise the first time, it took me about 2 weeks to
think through and answer each of the questions. Don't take this lightly
– your family’s financial future is at stake.
4. Once you are done, ask your spouse, partner or significant other
answer the questions.
5. Once both of you have finished, schedule an appointment with each
other and sit down together and review your answers.
Where are you on sound footing? Where do you need some help? If you need
some help, seek out a qualified professional to help you with that
particular question.
6. Now give yourself a pat on the back. What you have done is take the
first and most important step to becoming financially independent AND
you have just spent more time planning your financial future than 99% of
the rest of the population.
7. Get out the notebook once a quarter and review it. Update it with
anything that has changed.
Good Luck – You’ll sleep better at night knowing that you’ve done all
you can you’re your loved ones.
That’s about it for now. Let me here from
you if you have any questions.
Robert Christy
The Intelligent Trader
P.S. Are you interested in trading along
side me? There are 2 ways to do so. The first way is through my stock
trading service, The Intelligent Trader. For just $249 you get a front
row seat and the chance to get up close and personal with the market.
Just click to learn more. The other way is through my dynamic forex
trading service. If you have an interest in trading and/or learning
about forex, just drop me a note. I am in the process of finalizing a
new mentoring service geared to just trading the forex markets. In your
email, please let me know when would the best time to get in touch with
you.
P.S.S. Please fee free to forward this
to your peers, friends and associates you think would benefit from its
contents. They will thank you for it - and so will I!
The Intelligent Trader's ‘Long and
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Robert Christy is a professional
stock/currency trader, money manager, author and speaker. Mr. Christy is
the President CEO of Christy Investment Group, Ltd., a registered
investment advisory firm. He is also the Managing Partner and Portfolio
Manager of Crabapple Capital Group, LLC and the editor/publisher of The
Intelligent Trader, a subscription based long/short trading service. At
the time of publication, Mr. Christy may from time to time write about
stocks in which he, Christy Investment Group Ltd, Crabapple Capital
Group, LLC or The Intelligent Trader has a position. In such cases,
appropriate disclosure is made. Under no circumstances does the
information in this column represent a specific recommendation to buy or
sell stocks. Mr. Christy appreciates your feedback and invites you to
send it to
rac@intelligent-trader.com .
Robert Christy
The Intelligent Trader
c/o The Christy Investment Group
P.O. Box 625
Alpharetta, GA 30009-0625
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© Copyright 2008 Robert A. Christy
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