I wanted to let you know I am here for you at this time. It has been a real challenge the last few months and knowing we still have a lot more to face to overcome this.
Now is a great time to talk with people. Reconnect with family and friends and check in on them, prioritize what is important, and be grateful for what we have.
Same thing financially. Times like this show us our weaknesses, what gaps do we have, what do we need to sure up and fix to be prepared the next time something like this happens. Now is the time to prioritize your goals financially and make sure your plan will get you there.
I am working during this time in my office. While our office is closed to in-person meetings during this time, I am available for phone calls and virtual meetings. We have all the support/resources/technology to support you right now and continue to have teleconferences and virtual meetings we have been doing them for years.
Put people first, this is a time to come together and come out of this stronger than before. I believe our relationships with others and ourselves will be better once we have time to prioritize what is most important to us at a time like this.
What am I doing right now? I am talking with other financial advisors, investment managers, economists, investment companies, and looking at the academic science and research of investing. Attached are some great pieces for tips on what to know now:
- Stay the Course - There has always been bad times not to invest in the past and you have always come out ahead by sticking to your plan
- 2008 Crash - 2nd worst of all time within 1 year you would have earned back 70% and over 5 years over 200%1
- Focus on what you can control1
Markets decline on average 35% every 6 years and a bear market last for 10 months. Generally the markets best days are during this time, when everything looks bad and the market begins its rebound before the economy or any other positive signs.5
What can you do right now?
- Reevaluate your current investment strategy. Did it do what you expected it to?
- Focus on your personal goals and the long-term. Not the short-term swings and the news.
- Consider refinancing - Interest rates are dropping, if you have rates above 4% you should at least get a new quote. I have lenders and mortgage brokers if you need one. 2
- If possible, keep to your current monthly savings plan. If you have been contributing to your investment accounts you may want to keep contributing. 3
- Re-balance your current investments. How you are currently invested has now taken a dramatic hit and may not be in balance with your risk preference. 3
- Roth Conversions - This will move forever taxable money to forever nontaxable money. 4
- Consider your protection - Life insurance applications are up the last month according to Forbes Magazine. People are thinking about what is important to them right now. Life insurance companies have made it easier to get coverage right now. I can complete the process without you having to see anyone and all online.
- Be Grateful - be grateful for what you have. Fulfillment in life does not usually come from wealth. What's really important in life to you? What makes you happy? For me I found out I can live with a lot less than I have and be happy. I was concerned a lot with the future and reaching goals I set for myself personally and professionally. I lost sight of enjoying today, "Stop and smell the roses" as they say, I didn't do that enough, I didn't have the time. Now I was forced to have the time haha, and it was much needed. A self correction. There are a lot of amazing things in this life, a lot of miracles, and we have a lot to be grateful for.
- Last but not least; SHARE. Share with each other, with family and friends, and strangers. Share this email with anyone you know who is worried or thinking about their investments, their finances, their retirement. Share my phone number and email with them, I am hear just if they want to talk and maybe be put at ease.
I am here to talk anytime you need to. I have no idea how long this will last, but I will be here the whole time at the ready waiting for your call and any calls from people that are important to you.
Together we can accomplish anything.
1This material has not been endorsed by Guardian, its subsidiaries, agents, or employees. No representation or warranty, either express or implied, is provided in relation to the accuracy, completeness, or reliability of the information contained herein. In addition, the content does not necessarily represent the opinions of Guardian, its subsidiaries, agents, or employees.
2Guardian does not issue nor advise for mortgages.
3All investments and investment strategies contain risk and may lose value.
4Guardian, its subsidiaries, agents and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation.
5Ned Davis Research as of 12/31/2019