Principles For A Successful Financial Year

It’s the High Holiday season for Jews around the world, a time of prayer, repentance, family, and introspection. While each of these themes holds deep significance, I find that introspection is especially foundational in setting the stage for a successful future. This applies to all facets of life, including one’s finances.

As I reflect on the Jewish year 5785, which concludes at sunset on September 22, 2025, with the onset of Rosh Hashanah, there were some nerve-wracking moments. The markets and the broader economy have faced some turmoil. This year included “Liberation Day,” when President Trump imposed reciprocal tariffs on nations around the world, triggering a sharp market downturn. We’ve also seen ongoing and emerging geopolitical tensions in both Europe and the Middle East.

On the other hand, Artificial Intelligence (AI) has emerged as an exciting investment theme, helping to propel markets upward and reshape industries.

I’ve come to appreciate that, no matter the headlines, there are several timeless investment principles every investor should understand. Familiarity with these concepts can help position us for a year of financial clarity and success.

Principle #1: The Unpredictability of the Markets: As recent financial headlines show, the market can plummet one day following the announcement of tariffs and then skyrocket the next. International stocks, which have underperformed for years, are currently up double digits as of this writing.

The takeaway? Nobody, not even seasoned Wall Street strategists, can reliably predict what will happen year to year. And that’s okay. If we could foresee the future, investing would be far simpler.

The key to navigating this unpredictability is avoiding the trap of putting all your eggs in one basket. This strategy is known as diversification. By spreading your investments across a range of asset classes and geographies, you reduce concentration risk and position yourself to weather whatever storms may come.

Principle #2: Don’t Try to Time the Market: Given the constant fluctuations in stock prices, it’s tempting for investors to try to time their entry and exit or to chase the latest hot investment. But this strategy simply doesn’t work.

Putnam Investments published a compelling study a few years ago illustrating the pitfalls of market timing. They analyzed the 15-year period from December 31, 2006, to December 31, 2021, and found:

• Staying fully invested in the broad market would have yielded a 10.66% annualized return
• Missing the 10 best days would have dropped that return to 5.05%
• Missing the 20 best days: 1.59%
• Missing the 30 best days: –1.18%
• Missing the 40 best days: –3.58%

The takeaway is clear: jumping in and out of the market puts you at serious risk of missing the best-performing days, which are often clustered around periods of volatility. For example, if investors panicked in April of this year after the tariff announcements, and exited prematurely, they would have missed the entire market rebound that followed.

Principle #3: Stay Optimistic: Positive thinking is one of the defining traits that has sustained the Jewish people for over 5,000 years. This is something I reflect on during the holiday of Rosh Hashanah.

Optimism is also a core characteristic of many successful investors. Maintaining a bullish outlook on the long-term direction of the markets often leads to favorable outcomes.

Pessimists may dominate airtime on financial news networks, but they’re frequently wrong. A prime example: after the Great Financial Crisis of 2008 – 2009, many of the strategists who predicted that downturn have continued forecasting the next recession or bear market. Meanwhile, the market has gone on to deliver one of the longest and strongest bull runs in history.

Stay positive and position your portfolio with optimism. Over time, the market tends to reward those who believe in its resilience.

Principle #4: Ignore the Noise: There are countless distractions out there, talking heads, financial influencers, friends, or your broke brother-in-law. Most of what people say, or what’s happening around the world, is not directly relevant to your portfolio.

Yes, it can be unsettling to hear about geopolitical tensions, war, or negative economic news. But it’s critical that investors avoid making financial decisions based on headlines or herd behavior.

Instead, focus on what truly impacts your financial life: your time horizon, risk tolerance, family dynamics, and specific goals. Most other information is just noise.

Principle #5: A Framework for Making the Right Decisions: Establishing a clear framework for financial decision-making can be immensely beneficial. Key principles include spending within your means, maintaining a healthy savings rate, investing prudently, and avoiding emotional reactions.

Good financial choices require discipline. That’s why automating as much of the investment process as possible can be a game-changer. For example, setting up your accounts to automatically deposit a portion of each paycheck directly into a predetermined investment can help keep you on track and reduce the temptation to deviate from your plan.

Principle #6: Stay the Course: One of the greatest determinants of financial success is the ability to stick with a strategy across varying market environments. Success in investing, and in most areas of life, comes down to consistency.

Legendary quarterback Tom Brady once said, “To be successful at anything, the truth is, you don’t have to be special. You just have to be what most people aren’t: consistent, determined, and willing to work for it. There are no shortcuts.”

If you have a sensible plan and stay the course over time, you’ll be amazed at the wealth you can accumulate.

Final thought: Regardless of the challenges or opportunities you’ve faced this year, it’s important to remember that nothing lasts forever. Life, and the markets, are cyclical.

If 5785 was a difficult year for you, it won’t stay that way forever. And if 5785 was a banner year, that too will eventually change. This constant ebb and flow is part of life’s rhythm. It offers hope when things don’t go our way and reminds us to stay humble when they do.

The key to a successful financial future lies in appreciating these ups and downs, and having a plan in place to navigate them with clarity and resilience. Embracing the six aforementioned principles will help prepare you for a financially successful year ahead.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. ParkBridge Wealth Management is not affiliated with Kestra IS or Kestra AS. Investor Disclosures: https://www.kestrafinancial.com/disclosures.