It doesn’t matter how well you plan or how good your investment strategy is, there will be a curveball at some point.
Unfortunately, there’s often little you can do except stick to your plan as well as you can. Long-term goals come into their own if you accept there will be hiccups along the way.
Think back to the Global Financial Crisis of 2007-08. While economic commentators had predicted it, the average person in the street didn’t see it coming and millions of people with money invested around the world were affected.
I guess the only comfort in such circumstances is that most people find themselves in the same boat.
Consider the Covid-19 pandemic. Cast your mind back to last December: would you have believed then that in many countries people would be confined to their homes for weeks at a time? Or that NZ’s borders would be closed to foreigners indefinitely? We couldn’t have foreseen it.
These ‘X’ factors can throw you, but aren’t always negative. Sometimes unforeseen events are windfalls, such as the rapid appreciation in value of an investment property due to market fluctuations.
The trick is to keep a steady hand on the tiller and not make rash decisions. Expect the unexpected, no matter what.