Lessons We Learned in 2022

As we enter 2023, we reflect on a year of significant change in a variety of ways. As the world keeps moving forward, we remain committed to being lifelong learners – understanding we are molded by our experiences and knowledge just as a potter molds their art. Through it all, one thing remains true: “Those who cannot remember the past are doomed to repeat it.” In a spirit of reflection and growth, we asked each of our team members to share one “lesson learned” or ever-green truth they found prominent in their professional lives over the course of 2022.

In 2022, lessons we learned include…

…when the going gets tough, stay the course.
When markets are down, it is easy to yearn for safety. During times I go for a long run, I often yearn for a similar sense of safety – ignoring my health, watching Netflix, and eating Doritos on the couch. In both scenarios, one thing is true: going to safety doesn’t result in better outcomes – it only leads to a longer, more difficult road to reach your goals. I have found that during my runs, redirecting my focus not towards the temporary pain but towards the progress made provides the encouragement I need to keep going. The same is true with investing. Remaining committed to sound investment strategies and personal goals results in success. This is especially true during market downturns, as continued saving and investing leads to even greater growth as the rebound occurs.

…to find peace in discomfort.
Watching the TV mounted to the ceiling at the dentist, understanding the growth happening during difficult conversations, and moving forward even during grief. Solace comes in a variety of forms but provides one truth: we can always find peace in discomfort. While not always the easiest task, 2022 provided a plethora of practice to not only engage in the uncomfortable situations, the challenging conversations, and the times when burying my head in the sand was easiest – but to find peace in them. Similarly, when the market is turbulent, we can fix our focus not onto click-bait articles, but onto our financial plan, our tried-and-true investment strategy, and our daily commitment to reaching our goals.

…investing represents real interests in the economy.
Throughout 2022, something I frequently reminded myself and clients of is that when you invest in securities, you own interests in real businesses, with real assets, run by real people with a real desire to innovate, grow, and support their own families. If you are properly diversified, it is not just one or two businesses (or even a dozen) that you own. You likely own interests in hundreds if not thousands of businesses that represent millions of people working for those businesses. The economy and businesses are resilient. While a handful will fall away, the economy by and large will continue to innovate and grow into the future. That is why we invest.

…moving forward is better than not moving at all.
In 2022, I faced a lot of changes both professionally and personally. With each decision to be made, I felt I had to make the absolute best choice possible. While this sounds easy on the surface, I soon found that I was succumbing to “analysis paralysis.” The fear of making the wrong decision was halting me from making any decision at all. Throughout the changes of 2022, I learned that it is only possible to know what the absolute best decision would have been in hindsight and that moving forward, even if it must be with 95% confidence, is better than not moving at all.

…prioritize investing in your future.
In 2022, I embarked on my journey to obtain my master’s degree in Financial Planning. When I was debating applying, I found myself weighing the cost between paying thousands of dollars to the benefit I would receive from going back to school. My decision was ultimately most influenced by the knowledge I would gain and, subsequently, the long-term benefits I’d receive throughout my career. While it wasn’t clear in the beginning, I was not only paying for a degree, but also for the added value and expertise I will bring to clients of River Capital Advisors for years to come. I see clients face the same dilemma when considering investing in a financial plan: while there is a cost, it is more importantly an investment for your future self.

Throughout 2023, we encourage you to remain committed to growth, wisdom, and creating the life you hope for. Contact us any time to discuss how River Capital Advisors can assist you in 2023 and beyond.