In the late 1990s, there was a company called Pets.com.
They raised nearly $110 million in four rounds of private-placement funding by December of 1999, had a sock puppet mascot, and somehow - despite never turning a profit - became a household name. You couldn’t watch TV without catching their quirky commercials.
They were the darlings of the dot-com boom: big ads, big hype, and nearly zero fundamentals. By 2000, the bubble burst. Their stock cratered. Nine months post-IPO, Pets.com was gone. Investors lost almost everything.
And yet… people believed right up until the end.
That’s the thing about markets, they don’t just move on math. They move on momentum, emotion, and the stories we want to believe. Sound familiar?
Fast forward to 2025, and we’re seeing echoes of that same script. The so-called "Magnificent Seven" tech stocks now make up nearly 29% of the S&P 500. That’s not a bubble call - these are solid businesses - but it is a concentration worth watching. Growth and gravity don’t cancel each other out forever.
Even Warren Buffett’s keeping his distance, having sold his two S&P 500 ETFs VOO and SPY. His words still ring true: “Be fearful when others are greedy, and greedy when others are fearful.”
Financial planning, then, isn’t just about riding the highs. It’s about preparing for the lows - having systems in place so you don’t panic when the music stops.
Because Pets.com wasn’t just a funny commercial, it was a cautionary tale. It reflected our behavior, not just bad business.
And if your financial plan doesn’t account for your own behavior, then it probably isn’t much of a plan.
What’s Really Going on in Markets?
Let’s zoom out.
As of March 21, 2025, the S&P 500 dropped around 9% from its mid-February high. That’s close to “correction” territory. It's erased over $5 trillion in market value, a hit we haven’t seen since the 2022 bear market.
But let’s be honest: this didn’t come out of nowhere.
The Shiller P/E ratio - a widely respected measure of market valuation - has been flirting with historical highs for years. It’s not about short-term noise; it’s about long-term context.
Since 1929, the S&P 500 has seen 56 corrections. Only 22 of those turned into full-on bear markets. Corrections are normal. What’s different now is the structure of the market: high-frequency trading, hedge fund leverage, and massive concentration in a handful of tech names.
This is why we focus on building a resilient wealth strategy - one grounded in behavior, diversification, and smart systems. Financial planning is about helping clients stay steady, even when the headlines suggest otherwise.
Think of your entire portfolio like a ship: did you plan for storms, or only expect smooth sailing?
Why Emotions Run the Show
Let’s clear this up: we’re not rational creatures. Not when it comes to money.
We’d love to believe we’re logical, but more often than not, we’re emotional. Fear, overconfidence, regret, nostalgia - they all show up in financial decisions.
In fact, studies have consistently demonstrated that average investors tend to underperform market indices, primarily due to behavioral biases and market timing errors. You know who wins? The ones who leave their accounts alone.
That’s not luck. That’s restraint.
Planning Application: Build guardrails. Create systems that protect you from yourself - like automatic savings, asset diversification, and enough liquidity so you’re never forced to sell during a dip.
Coaching ≠ Knowledge. It = Action.
Financial coaching isn’t about giving you more spreadsheets. It’s about helping you act on what you already know.
It’s about translating insight into behavior - especially when you’re scared, uncertain, or overwhelmed.
Good financial planners? They’re part educator, part therapist, part strategist. They help clients zoom out, breathe, and focus on the long game.
Money Without Mission Is Just Math
What’s your wealth for?
Security? Freedom? Legacy? Impact?
Without a mission, planning becomes just another to-do list. But when your financial decisions are anchored to purpose, everything else gets clearer.
It’s not just about chasing returns, it’s about understanding what kind of risk you’re taking, and why.
Planning Application: Define your “why.” It brings clarity to investment choices, risk tolerance, and long-term priorities.
Diversification Isn’t Boring
Valuations in many sectors are sky-high. When a handful of giants dominate an index, the market becomes more fragile.
This isn’t about picking winners, it’s about building resilience.
Small-cap value, international stocks - they all have a role to play. Historically over the long term, small caps have outperformed large caps, but not consistently. Not every year. Not every cycle.
That’s why we diversify. Not because we know what’s coming, but because we don’t.
Planning Insight: Diversification doesn’t guarantee profits or prevent losses. But it’s a powerful tool. Own the whole haystack. Mix asset classes. Rebalance consistently. Keep costs low.
Consistency Beats Perfection
Waiting for the “right” time to invest?
You’ll be waiting forever.
The best investors don’t time the market, they spend time in the market. Small, consistent contributions beat big, erratic ones.
Practice leads to belief. Belief leads to habits. And habits build wealth.
Planning Application: Automate your behaviors. Set rules that help you save, invest, and build, even when motivation fades.
Time to Rethink Old Beliefs
Maybe you grew up thinking investing was risky. Or that money is only for the lucky. Or that financial planning is something rich people do.
Those beliefs may have served you once. But if they’re holding you back now; it’s time to update the software.
Curiosity beats cynicism. Always.
Planning Application: Keep learning. Financial literacy isn’t a one-and-done. It’s a lifelong skill, and it pays dividends (literally).
Ideas Don’t Matter If You Don’t Act
How many people read an article, hear a podcast, or get a brilliant idea, only to do nothing?
Execution is where wealth is built.
Planning Application:
- Set up frictionless saving systems.
- Automate investments.
- Define clear goals.
- Make the hard decisions before life forces your hand (think estate planning, insurance, risk management).
Control the Controllables
Markets will do what they do. Recessions will come. Tax law will change.
But your savings rate? Your spending? Your habits and mindset? Those are yours to own.
The greatest edge in financial planning isn’t some secret strategy, it’s emotional discipline.
Planning Application: Filter every decision through this question: “Is this something I can control?” If yes, act. If no, stay calm, stay the course.
Build a Plan That Works When Life Doesn’t
Markets rise. Markets fall. Your plan should hold steady.
True wealth isn’t measured by short-term performance, it’s measured by peace of mind, regardless of market noise.
A resilient financial plan doesn’t promise no turbulence. It promises you won’t panic when it hits.
Because the goal isn’t just returns. The goal is freedom. Flexibility. And a sense that, no matter what happens, you’re going to be okay.
Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. All investments contain risk and may lose value. Diversification does not guarantee profit or protect against market loss. The opinions expressed are those of the author and not necessarily those of Guardian or its subsidiary. 7790545.1 Exp 04/27