Why Financial History Matters for Smarter Investing
They say if you don’t know your history, you’re destined to repeat it—and that’s just as true with investment decisions as it is with anything else. I had the pleasure of joining Fox14 Charleston’s Money Monday to dive into why financial history matters, how emotions shape our financial planning, and what lessons investors can carry forward—whether we’re living through boom times or weathering bouts of volatility.
As a certified financial planner and fiduciary advisor, I see a common thread tying investors together: fear. Whether markets are flying high or dipping into the red, our brains are hardwired for overreaction and short memories. It’s easy to forget the pain of events like the Great Recession once the sun comes out—or, just as quickly, to lose discipline and let credit card debt and lifestyle creep take over. In the segment, I emphasized that markets and economies are cyclical: periods of stress, inflation, or soaring gas prices do pass.
But the investors who thrive are those with a plan—a diversified, resilient approach they can live with through every market cycle, not just when things feel easWhen asked about where to invest right now, I explained that classic strategies like a standard 60/40 stocks-to-bonds portfolio may not offer as much protection as we think, especially with the bond market facing headwinds from low or rising interest rates. For those starting with smaller amounts, it’s about developing good habits: investing early and often, understanding the power of compounding (letting your money—and your returns—work harder for you), and being honest about your own behavioral biases. I always encourage clients to learn from financial history, recognize “herd mentality” in rising markets, and avoid chasing trends out of greed or running for the exits out of fear.
Finally, when it comes to seeking advice, not all “alphabet soup” after an advisor’s name is created equal. My second book, The Seven Pillars of Financial Wisdom, was written to help clients vet their financial planner, not just based on credentials, but on trust, clear communication, and a true understanding of what matters to you.
Bottom line? Whether you’re just starting your investment journey or preparing for retirement, the right partner makes all the difference. If you want a financial advisor who will help you harness the lessons of history, navigate cycles, and build a plan tailored just for you, let’s connect. After all, trust is the foundation of every great wealth management relationship—and I’m here to help you make every chapter of your financial story a little brighter.