All tagged SLO Financial Advisor
What does your dream vacation look like?
Are you picturing the white sandy beaches of a tropical island?
Maybe lush wilderness, ancient ruins, or a glittering city?
If you’re like many folks, you want luxury and a longer stay for your next vacation.1
You may even want to connect, heal, or finally experience that once-in-a-lifetime adventure.2
Those are just some of the most popular trends in travel these days.
Markets bucked and sold off again. (1)
Should we be worried?
Not necessarily. These things happen pretty regularly, especially when headlines are negative.
In fact, you might recall that we kicked off 2022 with a big drop. (2)
So, let’s talk about what’s behind the latest wild market ride.
(Scroll to the end if you want to skip right to the reassurance.)
What led to the selloff?
A number of economists think that a recession may be on the horizon.(1)
The latest forecast by the International Monetary Fund predicts that Russia's invasion of Ukraine is going to take a chunk out of global growth this year and next.(2)
Fannie Mae is forecasting slowing growth in 2022 and a recession in 2023.(3)
When multiple forecasts start pointing in the same general direction, it’s worth paying attention.
So, what do we do with that information right now?
Do we panic and freak out? Bail on our investment strategies to head off losses?
Nope.
You’ll often hear folks like me say that investors or markets “hate uncertainty.”
And that causes market drops and volatility.
Why do we hate uncertainty so much?
And how can we look past initial reactions and embrace the power of uncertainty?
I made a short video discussing 3 secrets to embracing the power hiding inside uncertainty.
First, what is a bear market? It’s when stocks have dropped more than 20% from their last peak.
So yes, in some sectors, we are in a bear market territory.(1)
But, as of this writing, the broader S&P 500 has not entered a bear market. It’s possible it will, especially in this environment, but it hasn’t yet.
So, let’s remember goals-based investors with a financial plan are not day traders.
We’re long-term investors, and the day-to-day and week-to-week gyrations aren’t as important as what happens over years. What’s more important are the values, objectives, and time frames that have been laid out in your financial plan, in advance. If the financial plan doesn’t change, or your personal goals don’t change, then the investments don’t change.
Here’s a quick chart showing just how common big market drops are:
Remember when Marie Kondo took the world by storm with her tidying up routine? Maybe not quite, but let’s roll with it. Her idea is that we can improve our lives by removing clutter and items that no longer “spark joy.”
We can apply similar principles to our financial lives. In this month's Visual Insights Newsletter I've included a 7 point checklist to declutter your financial life.
Current data tells us that the economy is in a steep contraction due to the coronavirus.
We don’t know how long it will last or how long the economy will take to recover.
How can we protect ourselves when we can’t predict the future?
I made a short video showing you exactly how the most successful companies in the world prepare when the future is unknown.
How much joy do you feel during the holidays?
If you’re like many people, the spirit of the season comes with a side of stress.
In fact, research shows that about 2 in 3 people experience holiday stress1— and that the pressure to feel happy is a major source of holiday stress and depression.2
Before holiday stress becomes overwhelming, stop it from snowballing. There’s plenty you can do to manage holiday stress and get more joy out of the season!
In this month’s Aquila Wealth Newsletter, we explore the causes of holiday stress and effective ways to deal with it. Click here to view it.
TIME-SENSITIVE: Medicare Open Enrollment is from Oct. 15 to Dec. 7.
It’s no secret that Medicare parts and plans are downright confusing.
So confusing, in fact, that many people unknowingly choose the wrong plan that ends up costing them thousands of dollars in surprise medical expenses from a doctor visit, a treatment, or simply filling a prescription.
Healthcare costs are one of the biggest expenses retirees face (but can be very manageable with the right knowledge!) which makes choosing the right plan even more important.
So whether you’re enrolling for the first time, or you’re already on Medicare, I highly recommend you download my FREE Medicare Guide that will help you choose the right plan that could save you thousands.
