The following article has been written by Income Solutions Director & Senior Financial Planner, David Ramsay. David outlines how his love of Yoga combines perfectly with his Financial Planning Philosophy:
Yin and Yang is a Chinese philosophical concept that describes opposite forces which are interconnected. Yin is the receptive and Yang the active principle, common references being light and dark, day and night and good and evil, to name a few.
As many of you may be aware over the last 10 years, I have been practicing yoga which I can recommend as a great way to help with your health.
There is a form of yoga called Yin, which leaves you feeling very calm, relaxed and stress free. The Yang to this form of Yoga is Bikram or Flow which is more strenuous, your heart is pumping and you can find yourself short of breath. Your brain can be screaming get me out of here.
This Yin and Yang philosophical concept is relevant to investing. Let me explain.
An asset is two-dimensional, Capital Value and Income, the Yang and the Yin.
If you follow Capital Values (Price) you will have noticed the NORMAL fall in prices over the last 6 months. The ASX fell from around 7,600 points to 6,540, which is about 15%.
Due to this fall the media scaremongers use adjectives such as sink, plunge and wipe off just to name a few. This may lead to some individuals being stressed, their heart pumping and short of breath. YANG!!!
Their brain starts screaming to get me out of here and they make terrible financial decisions in a state of panic.
For 35 years I have tried to get our clients to follow dividends (Income) as these dividends have proven to be a consistent, ever-increasing Income stream. Please refer to articles below on the increasing income and profits of some Australian business.
As Income is what will pay for our desired lifestyle why worry about capital values?
If individuals concentrate on INCOME, they will live a life being calm, relaxed and stress free. YIN!!!
This will allow individuals to live doing the things that are really important to them, e.g., time with family, travel and relaxation.
It is in individuals’ choice to live in Yin or Yang. I hope that Income Solutions has given you the knowledge and strength to live in Yin.
If you or a friend or family member are feeling a little ‘Yang’ with the NORMAL fall of share market prices please get in touch, I would be happy to conduct a ‘Yin’ investment class for you or them.
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