on September 22, 2026
It seems that we are always living in unprecedented times. When you flip on the news, a new catastrophe has occurred, a new presidential order, a new stock market development or change in the economy. Amid all the chaos, some investors are naturally jumpy. They wonder: Should I move my money around? Should I invest in a particular stock? Should I buy gold?
On the other side of the coin, investors who have built solid, evidence-based portfolios that are focused on long-term goals shouldn’t have to worry about a thing. They can ride the highs and lows with, perhaps, some minor rebalancing (I always suggest enlisting a trustworthy financial advisor to assist with this).
Is your financial plan one of the sturdy ones that can endure market turmoil? Or is it flimsy and susceptible to recessions, periods of high (or low) inflation, political decisions, or periods of economic uncertainty? To find out, I suggest considering a few aspects of your financial plan.
How Was the Plan Formed?
As a financial advisor, when I’m intaking a new client(s), I spend hours learning about their background, circumstances, goals, assets, and more. I conduct extensive interviews, asking dozens of questions to find out who my client is, what their current situation is like, and what they want for the future.
Everything matters. Do they have chronic health issues? Are their kids heading to college soon? Do they own an expensive boat that requires regular repairs? Do they run their own business? Are they hoping to buy a second home in Hawaii? These types of questions determine what recommendations I will make when helping the client construct a financial portfolio. If your financial advisor isn’t asking many questions or requesting relevant documents to review, that’s a red flag.
How Durable is the Plan?
A prudent financial advisor is not easily tempted by investment trends or flashy new financial “opportunities.” Though some trends can be successful, many are not. Exhibit A is the precipitous decline of cryptocurrency this past spring. Another example is the rise of betting markets as a form of “investing” (see my recent article on this topic).
Rather, any responsible financial advisor will steer their client toward long-term investments that align with their goals and circumstances. This isn’t about chasing trends; it’s about using evidence-based investing strategies that (typically) span not months or years, but decades.
Another aspect of “durability” is diversity. Any solid financial portfolio will include a carefully chosen array of securities and other assets, all of which fit the client’s unique circumstances.
Has the Plan Been Rebalanced?
Even if a financial advisor has put together a solid, comprehensive plan for their client, things can shift over time. The client’s personal situation might change (a divorce, a health scare, a job change), and so can the national (or global) economy and stock market.
Because of this fluidity, it’s important to revisit a financial plan regularly to see if it requires rebalancing. Typically, rebalancing a portfolio does not involve any major changes, just minor adjustments. It is not driven by fear, but undertaken as a way of staying current while still thinking long-term.
If your financial plan was put together by a diligent financial advisor who believes in evidence-based, long-term financial planning, you’re on the right track. It’s possible your plan needs to be rebalanced, but that should be a straightforward endeavor when you’re working with a logical, well-crafted financial plan. And when others are feeling the turmoil of the times, you can rest easy, knowing you have a strong financial foundation.