As we went through quarterly meetings during the last few months of 2019, several questions came up over and over again. I personally believe that if you hear the same question five times, it might be a good idea to address it, but if you hear the same question 20 times, 200 more people probably have that same question and are too busy to ask.
By now, I’m sure all the moms and grandmas out there are done with their Christmas shopping and have moved on to meal planning and making New Year’s Eve plans. Hat’s off to you for being organized and taking the lead!
Have you been procrastinating on any of your checklist items that need to be completed this year? (Remember that list we give you after your quarterly meetings..?) Do you have questions for us about checking any of these items off for 2019? Well, I’m lovingly reminding you that you have until about December 18 to bring them to our attention to ensure those things are taken care of by the end of the year.
When was the last time you reviewed your mortgage? If it’s been a couple of years, it may be worth pulling out those documents and taking a look at your rate, terms and payment. A few things have happened recently that might make this a good time to look into a refinance, especially if you have a strong credit score.
Sometimes the best strategy is to do nothing at all.
It occurred to me recently as I was thinking about the financial markets that there’s a strong possibility we’re in the same situation we were in between January 2, 2014 and January 4, 2016. During that time, the markets didn’t do much – they went up, but a lot of volatility occurred, and by the fall of 2015, everyone thought for sure we were headed for a recession. The markets were acting funny, and people were convinced that the bull we’d been in since the end of 2009 was officially over.
Then, between January 25, 2016, and October 9, 2019, the Dow Jones Industrial Average gained a little better than 60 percent, not including dividends. Even though most people’s accounts were positive, we were bombarded all the time during that two-year period between ’14 and ’16 that the bull was dead. Many people were still making money. They just weren’t making as much money.
The reality is that we do sometimes go through these periods where the markets gyrate up and down and there’s a bunch of gibberish made up by journalists. But, this volatility is worth looking into, and some of you have decided to make some portfolio adjustments now, while we’re not in a recession. And that’s okay.
What I do find somewhat problematic is that, when the markets go nowhere, the best thing for investors to do might be to sit on your hands. Most of the stocks we own are solid American companies who continue to innovate, and whose worth will be realized by investors. But these will also gyrate back and forth, and we won’t know who the true winners are until we’re out of this market period we’re in.
People often take volatility as a time to make a lot of changes in their investments, and while we are actively monitoring your portfolios, I can assure you – and trust me, in my business, I rarely get to make guarantees – but I can tell you that between now and the next election, you’ll be hearing a few soundbites over and over: Trump. China. Impeach. Brexit. Boeing planes grounded. GM strike. Loss of consumer confidence. Impeach.
In my opinion however, all of that is just noise along the investment path.
Here’s the deal. If you’re going to need your money in, the next 24-36 months or so, please, give us a call and let’s talk. But, if you’re a longer term investor, it may be best to sit tight and ignore the news. Mentally remind yourself that most of your investments are a bet on the growth and innovation of America, and nothing else.
When I got into this business in February 1997, the Down Jones Industrial Average was right around 7,000. Currently, it’s around 26,000. I had no idea what the markets would do back then, and while I don’t have a crystal ball to forecast the next 22 years, I do believe that American ingenuity should continue to advance, and that the markets should reflect that ingenuity.
Article by David Smyth, CLTC, Senior Partner at Family Financial Partners — a financial services firm in Lexington, Kentucky.
As folks inch closer and closer to retiring, one thing absolutely everyone asks us at some point during a meeting is, “How do I stack up to other people my age?” The reality is, it doesn’t matter how you compare to anyone else, and besides, you don’t get to automatically retire just because you’re an above average saver, or you’ve hit a certain number. Comparisons to others have no place in retirement planning. What does matter is actually planning out what your retirement will look like on a daily, mundane basis.
First, there are two main types of coverage for you to consider: group or employer-sponsored life insurance, which is coverage that you sign up for with your employer’s human resources office, along with other employee benefits. Some employers offer basic plans at low or no cost to you, as well as options for more coverage at a higher cost. We can help you sort through what your employer offers if you’re not sure what you’re looking at. The second main type of life insurance is individual coverage that you purchase through an insurance company for yourself or a loved one.
September is Life Insurance Awareness Month, and today I wanted to talk about the most common myths and misconceptions we hear about this important part of your comprehensive financial plan. I know it’s difficult to think about the unthinkable, but having the right coverage can keep a loss from becoming a financial burden as well.
I am very happy to officially announce that McKellar Ciurlizza joined us this spring as Director of Client Services. She’s only been here a few months and McKellar has already made a big positive impact on our day-to-day operations. She brings more than 14 years of financial industry experience, and it’s been wonderful to add someone to the team with her insider knowledge of client relationships. I’m sure you’ll find her conversational style to be refreshing and and her attitude welcoming.
In our office, we see different approaches to money that tend to fall into a few distinct categories. In my business, I often find myself serving as a financial therapist for the families I work with, and that sometimes means figuring out why certain people fall into one of these categories. Finding and addressing the why can also help change any patterns that might be working against you.
*Representatives are licensed to offer insurance and annuity products in AL, FL, GA, IL, IN, KY, MA, ME, MI, MO, NH, OH, SC, and TN and are licensed to offer investment products in AK, AL, AR, AZ, CA, CO, CT, FL, GA, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, NC, NE, NH, NM, NV, NY, OH, OR, PA, SC, TN, TX, VA, WA, Washington DC and WV. This website and its content are not intended for residents of other states. Securities offered through: The O.N. Equity Sales Company, Member FINRA/SIPC, One Financial Way, Cincinnati, OH 45242. 513.794.6794 Investment Advisory Services offered through The O.N. Investment Management Company. Estate Planning Services provided in conjunction with your licensed legal advisor.