The past month has brought some significant challenges, and subsequent changes, for all of us. In today’s blog we’ll discuss three different levels of change: drastic changes, subtle changes, and little-to-no change. More importantly, we’ll look at our reaction to these changes.

First, let’s consider two of the more drastic changes. Our lifestyles have been dramatically affected by the COVID-19 virus. The term “social-distancing” is now familiar to all of us. Beginning this week, our entire team is working virtually/remotely from our homes. Please know that we have well-thought out plans and processes in place to continue serving you well. Also, as a result of the unknown impact of the coronavirus, the stock markets have dropped off significantly, ending the bull market that lasted nearly 11 years.

While the drastic changes have been happening, we’ve been diligently making subtle changes behind the scenes. We have seized the following opportunities created by the current market correction:

  • Portfolio Rebalancing – utilizing a systematic “buy low – sell high” strategy
  • Tax-Loss Harvesting – capturing sizable tax write-offs while the markets are down
  • Significantly reducing internal expenses inside the portfolios that we oversee

These subtle changes have the potential to bring you significant, tangible benefits for years to come.

That brings us to the “little-to-no” change category. Some of you have asked us what you should be changing regarding your investments. For the vast majority, our answer is simply “Nothing”! Herein lies the beauty of aligning your investments with your ongoing financial plan. If your plan hasn’t changed, there’s no reason to change your investments. Most of you have heeded our advice to implement the following strategies:

  • Hold Cash Reserves (3 to 6 months of expenses) for the unexpected, liquid & safe!
  • Invest 3 to 5-year timeframe money more conservatively, buffering some of the market risk.
  • Keep your long-term investments more exposed to the markets, giving you the freedom to wait and allow these accounts to rebound and grow when the investment markets recover, and they always have.
    Challenging times usually bring change and sometimes, difficulty. Our hearts go out to those business owners who are struggling, individuals who have lost their paychecks due to job layoffs, and for some of you, the inability to even see your loved ones, just to name a few.

    Yet, armed with faith and optimism we choose HOPE! We still have much to be thankful for, and ultimately, we know that God is our protector and that He’s still in control. Reading Psalm 91 gives us that encouraging reminder. Please contact us if we can be of any help or encouragement during this challenging season of life.

    Stay safe & healthy!  We look forward to talking with you soon!