Investing in the stock market and investing in a marriage: Are there similarities?
In both cases, there can be ups, downs and a bit of turbulence/ In both, it's well worth pulling through and continuing the relationship. However, it's important to weigh the risks too.
Recently, a client attended a marriage encounter program here in Naples for couples about to be married. Being older than most of the group, they absorbed the information from a vastly different perspective. The facilitators leading the program discussed financial affairs, communications, and family and belief systems.
The young people listened intently, and realized it wasn't as simple as it seemed.
Statistics very clearly reflect a much lower divorce rate for couples who attend these types of programs. It reminded me of the "divorce rate" in the markets. Those who have the experience of being an investor over a long period of time determine when to hang in there; people educated early on had realistic expectations set forth from the beginning for financial success.
A proper perspective, commitment to the process and focus on the result will be the ultimate fulfillment. It is sad when people do not have this good fortune. A great feeling can also be that of a union between two people and the building of their life together. It is also sad that over 50 percent of first and second marriages end in divorce.
Investing is like being married. The first step is that you must educate yourself a little bit, read and learn about money; while preparing for marriage, you must date and meet different people. Then, step 2, you must find the right fit. Compatibility with your investment program can be very similar to the compatibility that must exist between two people who are committing to a lifelong journey together as husband and wife. No two marriage partnerships are quite the same, as are no two investment programs.
However, the principles of what makes a good marriage and the principles of sound investing can be applied to any situation.
Define your tolerance level in your investment plan, which is step three. In a marriage, communicating your strengths and weaknesses, values and the types of things you each can compromise on. Communicate who you are, how you feel and what is important to you. And, as in investments, there is no "perfect" spouse. Each of us is capable of making mistakes and achieving great successes.
Investments are no different. There is no one perfect investment. There is no one stock that would work for everyone. There is no investment without flaws. Investing in the market brings with it a lifetime of challenges and rewards.
What we count on is to pick the right investment plan and the right financial advisers, so that compatibility helps to secure a fulfilling lifelong journey.
Kim Ciccarelli Kantor is president and founder of Ciccarelli Advisory Services Inc., a family owned and operated firm in Florida and New York, which provides comprehensive financial investment and estate planning services for individuals, families and businesses. Her book is "Preserving Family Wealth & Peace of Mind."
Ciccarelli Advisory Services Inc. is at 3066 U.S. 41 N., No. 202, Naples, 239-262-6577