Creating a Margin of Safety in Uncertain Times
Have you ever been driving on the highway and noticed someone tailgating the car in front of them? Maybe you’ve even experienced it yourself — glancing in your rearview mirror to see another car just a little too close for comfort.
Tailgating is dangerous. If something unexpected happens ahead, there’s little time to react. The margin for error is razor thin.
The same idea applies to your financial life.
We live in a world of constant uncertainty — markets, economies, geopolitics, and life events never move in straight lines. That’s why, at our firm, we believe strongly in helping our clients create a “margin of safety” in their investment portfolios and overall financial plans.
Morgan Housel, New York Times bestselling author, said it well: “The more margin you have, the less you need to know what happens next.”
A margin of safety means you’re not relying on everything going perfectly according to plan. It gives you space. Space to navigate volatility. Space to make good decisions under pressure. Space to stay calm when others panic.
Whether it’s holding cash reserves, diversifying income sources, or building a portfolio with quality and resilience, we’re always focused on keeping that buffer between your financial vehicle and the car in front of you.
Because tailgating — financially or on the road — is a strategy that only works when nothing goes wrong.
And in real life, things *always* go a little wrong.
**If you know someone who is feeling anxious or unsettled about the financial road ahead, feel free to give them our contact information.**
We’d be happy to share how we help families build financial margin and confidence — no matter what lies around the next curve.
All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.