By Jessica Lanning, JD, CFP®

 

This blog is for those of you who find yourself down a rabbit hole at the mention of a “better way” to invest.

It goes something like this…

As I was booting up to ski last week, this was the (paraphrased) conversation going on behind me.

Young Voice:  We don’t like any of the traditional investments.  We’re telling everyone who can to buy one Bitcoin before the end of the year.  It’s going to go to $100K next year and probably $1M in a few more years.

Slightly Older Voice:  Oh?  Why do you think so?

Young Voice:  We’re going to be in a recession, inflation is going to be out of control, the stock market is going to take a nosedive.  I’ve been doing this since I was 19 and I’m 26 now and I’ve seen enough cycles of crypto to know we’re about to see another boom.

Slightly Older Voice: I don’t like traditional investments either.  I like real estate.

Young Voice:  What?  You don’t think that bubble is going to burst?  Here, take my card.  I’m a Bitcoin consultant.  We can talk more.

Slightly Older Voice:  Thanks, and I think I’m good.

I’m thinking:  Get me out of here.  Time to ski.

FOMO happens to the best of us

I never saw the faces of these folks.  Doesn’t matter.  

Conversations like this, news clips, social media posts or a tip from a friend manage to rile up people’s anxiety more than actual data about markets. Even mine.

Just because it was said out loud.  

Many people can walk away from these conversations and never think twice.  

And sometimes my phone rings.  

Is this guy right?

Should I buy Bitcoin?

He’s young he probably does know about these things!

Is he right about the recession?

Omg, inflation is going sky high!

I need out of stocks!

I missed the fast money of the last Bitcoin rally.

I might miss out on the next Bitcoin surge.  

How will I manage my retirement?

I’m going to end up in a box under a bridge eating cat food!  Help!

Does any of this sound familiar, even if it’s happening only in your head?

FOMO is a thing

If conversation like the above sends you over the edge, you need a way to recover.  

The Fear of Missing Out (FOMO) is the culprit here.  You hear about something great and worry that everyone but you might get that something great.  

Chances are high that you will not.  Doesn’t reduce the anxiety though.  

That’s a pretty human reaction.

So what now?

First, breathe.  

Second, sleep on it.  These two steps fix 90% of the problem.  

Third, ask yourself if you really believe your investment plan won’t work without the proffered suggestion.  

And if you can’t answer that question….

Fourth, call your financial planner and talk it out.  

There are many roads leading to Rome, with Rome being an investment success.  You do not necessarily need the latest and greatest thing everyone is talking about to succeed.  

Chances are pretty good that you’ve been doing all the “right” things – managing your career, living within your means, saving money, etc. – then you’re probably on track.

But what if they’re right?

Sometimes I’ll hear, “yeah, but if I do invest and hit it big, my situation will be that much better!”  

Yeah, maybe.  Or maybe not.  

Also, be careful about how you think of and define “better.”   Money can’t do everything or solve every problem.  

If you’ve done all the steps above and you still can’t resist, go ahead and invest all the money you’d be willing to flush down the toilet.  At least that way, you won’t have to bear the fear of missing out on your previously laid plans.

If you want to talk about Bitcoin or investment allocation or financial success, please reach out. 

 

 

Jessica LanningAbout the Author:

Jessica Lanning JD, CFP® brings focus and perspective to your individual financial needs to identify your opportunities for investment and wealth. Regardless of what you’ve done before or what “mistakes” you think you’ve made, Jessica can help get you back on track quickly and safely. As a former practicing lawyer, she brings a comprehensive approach to legal, tax, and financial challenges so that her clients can enjoy peace of mind. A huge proponent of conscious decision-making, Jessica makes sure her clients are educated and informed so that they make sound decisions with clarity and confidence.  Lanning Financial Inc. is a registered investment adviser. The information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

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