Plan for the worst, hope for the best.

Plan for the worst, hope for the best.

I do not know how many times those words have come out of my mouth.  As a financial planner, it’s my job to make sure that my clients are doing just that.

None of us have ever been here before.  But I have gone through a thing or two with you over the years.  For some of you, we started together with the Tech Wreck of 2000.  Others of you were with me through Nine Eleven.  A majority of you experienced the Great Recession with me in 2008.  Here’s what I learned over the years and then incorporated into my planning process.

  1. You have to be invested at your proper risk tolerance. This is why we completed an Investment Policy Statement with each of you.  This is why we compared your existing investments to your risk tolerance at least once a year – to make sure that they were in line with each other.
  2. You have to have a proper cash reserve. While I would like to help you invest every dollar you have, it’s not the right answer.  It is crucial to keep three to six months’ worth of your expenses in a cash reserve.  As we approach the coming weeks, a lot of people are wondering if they will continue to receive a paycheck.  People who have prepared in advance are a lot less stressed!
  3. If you are taking a distribution, have a strategy that can weather a down market. We have portfolios designed with guaranteed income streams, conservative buckets of money that we make monthly payments from and dividend paying investments that refill the conservative buckets of money.
  4. Tie your investments to your goals. If you are saving for a new home or other short-term goal, we recommend that you use cash like investments for any goals under a three-year time frame.   If you have a student going to college shortly, use 529 plans that dial down the risk the closer your student gets to starting.

We’ll work through the current situation together.  While this is a unique crisis, they all are.  Through the years, we’ve helped you lay strong financial foundations and positioned you for a crisis situation.

We’ll be reaching out to you.  In the meantime, if you have any questions or concerns, please reach out to us.  We’d love to hear from you!

Stay Healthy,