Welcome to the Educated Investor,
our monthly newsletter with information that can help you with your retirement planning. Feel free to use this information and to pass it along to your friends and associates. If you are interested in additional information contact our office at 720-482-1917 or email scichon@householdergroup.com

**The Coronaviurs Aid, Relief and Economic Security Act or
CARES Act has been signed into law. Please click on the link below to read a synopsis of what this means for you. Should you want further clarification, or want to take advantage of the RMD waiver, please give our office a call.



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F E A T U R E D A R T I C L E
Keeping Calm During Market Volatility

Key Takeaways
  • The one certainty of investing is that your portfolio will experience volatility.
  • Volatility can often lead to irrational decisions, such as exiting markets prematurely. Evidence shows that market timing is a poor investment strategy.
  • For long-term equity investors, the most powerful factor is time. An investor’s time horizon is directly correlated with the likelihood that his or her portfolio will experience a positive return.
The US stock markets entered bear market territory after coronavirus was declared a pandemic, ending the longest bull market in US history just days after its 11th anniversary. The bear market reflects a 20 percent drop from record highs. Looking forward, a sustained rally will likely require three key developments. First, evidence of a successful virus containment in developed markets. Second, clarity on the economic impact of the virus, and finally a concerted global policy response. Market volatility is likely to remain as progress towards these three developments continue, leaving investors wondering what to do in the meantime. In the middle of a bear market it’s prudent that investors remain focused on the long term to avoid being derailed from their goals. Consider the following tips for some perspective. 

Staying invested matters
Many investors are tempted to go to cash and wait for the coast to clear before getting back in. However, research shows that the results of doing so are less than optimal. The below chart illustrates the growth of $10,000 in the S&P 500 for the period from January 1, 1994 through December 31, 2019.¹ It looks at the impact of the portfolio for investors who missed the 10, 20 and 30 best days of the market performance for that 26-year period. Simply missing the ten best days drops the overall return by 50%. The results only get worse as more good days are lost. One of the reasons is that while many of the worst performing days occur during bear markets so do many of the best performing days. Trying to time the market without missing the top ten days requires surgical precision, to say the least, suggesting that it just doesn’t work consistently.
What can investors do?
This is not to say that investors are to do nothing.  The best advice for investors is still to focus on one’s goals and rarely should short-term market fluctuations significantly derail the likelihood of success. Second, re-affirm your risk tolerance. Many investors overestimate their comfort level when it comes to market volatility, especially when markets have consistently risen over the past 10 years. Third, volatile markets can reveal whether a portfolio was adequately diversified. Regardless of market conditions, diversification is key and one of the best ways your portfolio can cushion itself from market downturns. Finally, seek opportunities. Strategies such as tax-loss harvesting, and re-financing debt given low interest rates can be considered. 
Remember the big picture
The increase in volatility has understandably renewed anxiety. For long-term investors, time is the greatest ally as historically bear markets do not last as long as bull markets. While past performance is no guarantee of future results, the below chart of the historical performance of the S&P 500 stock market index returns through bull and bear markets from 1926 through 2019 is a reminder to maintain perspective.²  The average bull market period lasted 6.6 years with an average cumulative total return of 339%, while the average bear market period lasted 1.3 years with an average cumulative loss of -38%.

Conclusion
The famous motivational slogan “Keep Calm and Carry On” was produced by the British Government in 1939 in preparation for World War II. It was intended to raise the morale of the public as citizens faced threats of mass air attacks. While we are not facing war, investing during periods of volatility can certainly cause us to lose our calm. When emotions and investing cross paths, it can lead to costly decisions in the long run. It’s critical that investors look beyond volatility, focus on their financial goals and time horizons, and, most importantly, identify their appropriate tolerance for risk to remain invested. 
History of Bull and Bear Markets for S&P 500
1 https://www.lordabbett.com/en/perspectives/marketview/market-volatility-three-things-remember-scary-times.html 
2 https://www.ftportfolios.com/Common/ContentFileLoader.aspx?ContentGUID=4ecfa978-d0bb-4924-92c8-628ff9bfe12d

AssetMark, Inc. 1655 Grant Street 10th Floor
Concord, CA 94520-2445
800-664-5345

IMPORTANT INFORMATION
This report is for informational purposes only, and is not a solicitation, and should not be considered as investment or tax advice. The information has been drawn from sources believed to be reliable, but its accuracy is not guaranteed, and is subject to change. 
Investing involves risk, including the possible loss of principal. Past performance does not guarantee future results. Asset allocation alone cannot eliminate the risk of fluctuating prices and uncertain returns. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against a loss. Actual client results will vary based on investment selection, timing, and market conditions. It is not possible to invest directly in an index.
AssetMark, Inc. is an investment adviser registered with the Securities and Exchange Commission.
©2020 AssetMark, Inc. All rights reserved.
83468 | C20-15690 | 03/2020 | EXP 03/31/2021
Activities to try while Social Distancing
While the current events surround us, we have the ability to immerse ourselves in home projects, bonding with family members and discovering more about ourselves. We would like to recommend a few activities and books to help inspire you to learn something new about yourself and your loved ones, or just to take you on a new adventure.  

Here is a list of 10 books Householder Group recommends:

1. Conscious Capitalism: Liberating the Heroic Spirit of Business by John
Mackey and Rajendra Sisodia
2. The Alchemist by Paulo Coelho
3. 11/22/63 by Stephen King
4. The Night Circus by Erin Morgenstern
5. iGen by Jean M. Twenge
6. Foolproof, and Other Mathematical Meditations by Brian Hayes

For the Family:

7. Dragons Love Tacos by Adam Rubin (Author) and Daniel Salmieri
(Illustrator)
8. Grandpa Green by Lane Smith
9. Extra Yarn by Mac Barnett (Author) Jon Klassen (Illustrator)
10. Sleep Like a Tiger by Mary Logue (Author) and Pamela Zagarenski
(Illustrator)



10 Activities to try while Social Distancing:

1. Write actual letters to family and friends. After that? Write thank-you notes to service people who you remember went out of their way for you.

2. Try out at-home aerobics or yoga videos. Consider downloading a fitness app with curated workout playlists.

3. Use Skype, FaceTime, Google Hangouts or Marco Polo to video chat with your long-distance friends.

4. Meditate. Try lying down with your eyes closed, palms up and while focusing on your breath. Or spend 20 minutes sitting cross-legged and repeat a soothing word to yourself in your head. (The latter is more like transcendental meditation.)

5. Work on your financial planning, such as exploring whether to refinance your loan or ways to save more money. 

6. Start a journal or blog. Sure, it can be about the coronavirus, but it could also be about a specific 
interest from chess to cheese. 

7. If it won’t bother your neighbors: Dust off that old instrument and practice.

8. Complete a puzzle and play board games. 

9. Download Duolingo, or a similar app, and teach yourself a foreign language.

10. Rearrange your furniture to make it seem like your home is a totally different space.

Source: https://www.usatoday.com/story/life/health-wellness/2020/03/16/coronavirus-quarantine-100-things-do-while-trapped-inside/5054632002/
©2020 USA TODAY, a division of Gannett Satellite Information Network, LLC. 
All Rights Reserved.
Spicy Turkey Lettuce Wraps
INGREDIENTS:
  • 1/2 pound lean ground turkey
  • 1/8 teaspoon pepper
  • 1/4 cup chopped onion
  • 2 tablespoons reduced-sodium soy sauce
  • 1/4 cup julienned carrot
  • 1 garlic clove, minced
  • 1/8 teaspoon cayenne pepper
  • 1/2 cup chopped peeled jicama or celery
  • 6 Bibb lettuce leaves
  • 2 teaspoons minced fresh ginger root
  • Hot mustard, optional

SERVINGS: 2

TIME: 20 Minutes

INSTRUCTIONS:
  1. In a large skillet, cook and crumble turkey with jicama and onion over medium heat until no longer pink, 4-6 minutes. Stir in soy sauce, ginger, garlic and peppers. Add carrot; cook and stir until liquid is absorbed, 1-2 minutes.
  2. Serve in lettuce. If desired, serve with mustard.
Sources: https://www.tasteofhome.com/recipes/spicy-turkey-lettuce-wraps/; Produceforkids.com
Scroll down past picture for answers.
Source: http://www.printmysudoku.com
Householder Group Estate and Retirement Specialists LLC. advisors are Registered Representatives with and securities offered through LPL Financial, Member FINRA/SIPC. Investment advice offered through Householder Group Estate and Retirement Specialists LLC., a Registered Investment Advisor and separate entity from LPL Financial.