Overcoming Analysis Paralysis

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It has been a long time since we have witnessed this much uncertainty in the world. In general, our everyday lives have been disrupted with little to no guarantees that normalcy will return soon… or even later.

As an investor, you may be experiencing a phenomenon known as “analysis paralysis”. What exactly is analysis paralysis? It can be described as over-analyzing or overthinking a situation that causes a decision to be “paralyzed” with no solution being acted upon. We are seeing this in recent market activity where investors are retreating to cash and sitting on the sidelines. During these turbulent times we should be hyper focused on our short-term AND long-term financial goals, yet analysis paralysis seems to be preventing us from taking care of our personal finances.

Here are a few tips to overcome analysis paralysis:

  • Keep it simple. There always seems to be an overload of information about the current economic environment and “experts” trying to predict what the markets will do in the future. It is best to block out the white noise. Try not to get weighed down with the amount of information available; much of it may be irrelevant to your situation.
  • Dip your toe in the water. Investing is not an all or nothing decision. Putting small amounts of money in over time will reduce timing risk and ‘should’ allow you to grow your accounts gradually over a time-period.
  • Be forward thinking. Establish your time horizon and goals. Do not worry about mistakes you made in the past and look at ‘your’ historical market trends with perspective. History doesn’t necessarily repeat itself and sometimes a fresh start is exactly what you need to develop a plan.
  • Delegate to a professional. Sometimes there comes a point where you need professional advice when managing your money. Investing requires both time and knowledge, commodities that many people don’t have the luxury of having in abundance. There’s no substitute in having a qualified financial professional who can help point you in the right direction, even with specific issues.
  • Keep apprised. It’s important to understand that nobody gets it right all the time. Life happens which can lead to a revision of our goals. When your circumstances change, you need to evaluate your plan and update it if it no longer makes sense.

We here at White Raven Financial want to help you avoid analysis paralysis and ensure you are still on the right path to reach your financial goals. We realize that we are currently experiencing an unprecedented crisis, but we are also here to help simplify the decision-making process. By creating a portfolio that matches your risk profile and time horizon and/or building a customized plan that analyzes your situation, we have the tools to get you where you want to be.

We’d like to invite you to complete a risk questionnaire with no obligation on your part as the first step in the financial planning process. Visit us here at our website to access your complimentary risk analysis: https://www.whiteravenfinancial.com/financial-services/investment-management/

Regards and thank you,

The Team at White Raven Financial


Advisory services offered through White Raven Financial Services, Inc. a Registered Investment Advisor in the State of Washington.

Brett Lathrup

Meet the Author:
Brett Lathrup

Brett Lathrup is a financial advisor at White Raven Financial. Prior to his transition to financial planning, Brett lived in Atlanta and worked with contractors and architects in the commercial building industry. Spending most of his days looking at building plans and sifting through construction documents taught him how to hyper focus on the details, no matter how small.