Financial planners are paid to worry. We are professional worriers not just your average amateur worriers. We have taken worrying to a new level and made it almost an art form.

The amateur worrier spends too much time worrying about things that are likely to happen. The true professional worries about the unlikely events that can be really disruptive to our plans. It is the unexpected that can cause the most harm.

For instance, your professional worrier is not concerned about the possibility of a rise in interest rates or a share market correction. These issues might slow the economy and may even bring on a mild recession but we have lived through recessions and market crashes before. The portfolios we recommend are built to withstand economic bumps.

A professional worrier considers much bigger issues. We worry about how globalisation is increasing the correlation between global markets so that the diversification of our clients’ portfolios is made less effective.

The point of worrying is to see where the world is changing. Change means we may need to alter our recommendations or take advantages of new opportunities.

A professional worrier has to do just the right amount of worrying. If you spend too much of your time worrying you may never invest at all. The pessimist focuses only on doom and gloom. They worry too much and leave their money in cash where inflation and taxes eat into their returns. At the other extreme, there are the out-and-out optimists who don’t worry enough. They can be unabashed bulls chasing the latest investment fad. History is littered with failed fads.

A professional worrier must be a cautious optimist. We believe you must be invested if you are going to achieve above-average returns. We know that creating portfolios based solely on historical data is not enough because history rarely repeats itself. Chasing a few winners is risky because you may get exceptional returns one year followed by big losses in following years. We know the enemy of compounding is losing – better to get consistent returns year after year.

Excuse us – we must get back to worrying now.

This article contains information that is general in nature. It does not take into account the objectives, financial situation or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information.