There are four key points I share with clients who come to me worried about the state of the country or the world.

1. We live in a world of global risk, and the challenges that keep people awake at night might not even be the ones they should truly worry about (think of COVID-19 as we entered 2020). This has always been the reality and will continue to be so. Nothing is fundamentally different now compared to the past.

• Understanding the nature of risk in today’s world, its personal impact, and how it aligns with one’s investment time horizon and cash flow needs all contribute to defining risk tolerance and asset allocation. Younger individuals, who tend to be more risk-tolerant, generally don’t require cash flow from their portfolio and have a long investment time horizon, making an all-equity allocation a reasonable option. In contrast, older individuals typically become more risk-averse, may need cash flow from their portfolio, and have shorter investment time horizons, which suggests that a fully equity-based allocation might not be suitable for them.

• It’s important to recognize that the media is selling a product—and that product often revolves around fear or concern. This applies to both financial and general media. I often use the analogy that when the weather forecast is only sunny and warm, nobody tunes into the Weather Channel. The constant barrage of news from our phones and TVs can distort one’s perception of reality, making people feel more anxious and pessimistic about life and investing. Consequently, limiting news consumption can significantly enhance one’s quality of life.

• Appreciate that life is very short. We’ll make sure clients are in a good position financially so the only things they need to focus on are their mental and physical health and pursuing activities that bring happiness, love, and engagement.

By framing fears and concerns within this perspective, clients often experience a paradigm shift, transforming how they approach both life and investing.