What does it mean to focus on job first? According to a recent article in the online Wall Street Journal…
“You have more control over what you do in the work force than in your portfolio,” says Ms. Hogan [a financial planner in Milwaukee]. That’s why she focuses more on understanding her clients’ job profiles and growth prospects than she does on trying to figure out which asset classes are going to deliver market-beating returns, she says.”
This is interesting because it’s not conventional advice. Most gurus recommend saving right away regardless of profession and that the younger you are the more aggressive with stock allocations you should be. Which is true. But I don’t think most people associate their career path with their long term savings plan. Not in the strictest sense anyway.
“General knowledge about what is happening in her clients’ professions sometimes figures into Ms. Hogan’s advice. When some of her physician clients told Ms. Hogan that reimbursements in their procedure-oriented specialties were going down, she made their portfolios more defensive by cutting back on stock allocations. If clients’ income is tied to the stock market, such as is the case with brokers, she suggests a low stock allocation because these individuals already are exposed to stocks through their jobs.”
I think about my career/job in terms of income but not necessarily how it should affect my investment strategy. Other than if I can work then I should work. And I should work for as long as I can.