Often times our view of the future is the fundamental reason for how we act today. Since our expectations about the future are regularly based on our recent experience, we act as if the next week, next month, and next year will be just like the last one. We seem to think that everything we do is correlated. If we are having a bad present then we look at our life linearly and think times will always be bad. If things are going well, then we believe that times will always be good.
The challenge of this comes when we are dealing with investments and planning for a future or current retirement.
So when you think about planning for your retirement, please keep in mind that you’ll likely experience cycles of highs and lows. You can’t predict when these periods will be or how long they’ll be. But you can plan on them coming and going.
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