Greetings!
We hope you're faring well and staying safe. We're continuing to work remotely with our clients and are upholding the tenets of our new social contract by practicing social distancing and regular hand-washing;
hearts on, hands off.
The purpose of this message is to deliver some action steps that we strongly recommend you take as soon as possible. We feel that the most likely scenario ahead of us is for the market to head back downward after the stimulus dollars have burned through the system and the larger problems for rebuilding the global economy are exposed.
The market has had a reactive rebound after the initial sell-off in March and so we have taken aggressive actions in client accounts to rebalance now in preparation for another potential leg down. These are things you can do on your own to prepare as well. Please reach out to us with questions.
- If you have children between the ages of 12-18: Consider reallocating current holdings in your child's 529 college savings plan to a more conservation allocation, such as a bond fund or a near-term target date fund (such as 2021 or 2022). Maximize the value of your dollar during any upcoming volatility by continuing to contribute regularly into a more aggressive asset mix.
- If you are over 55 and have a current work retirement plan: Reallocate your retirement plan investments to a more conservative asset allocation, such as a bond fund or near-term retirement target date fund. Continue to place ongoing contributions into a more aggressive or equity-based investment option. This will maximize the value of your contributions through the market volatility ahead.
- If you have extra cash available: We foresee potential buying opportunities ahead. Make an appointment with Jina and/or Stuart to strategize maximizing your investments in alignment with your values and goals.
- If you take an RMD (required minimum distribution): The CARES act waived RMDs for 2020. If you'd like to cancel your RMD this year, please let us know. Any RMDs that we have scheduled currently (through an annual distribution plan) will continue to go out. Please let us know if you have questions about your RMD specifically.
- If you have not filed your 2019 taxes: The CARES act delayed regular filing until July 15th, 2020. This means that you can still make a 2019 retirement plan contribution. Please consider doing so if you're able.
- For everyone:
- Review your expenses and ensure that you have 6 months expenses worth of cash available as an emergency fund. This includes business expenses and rental property expenses if those scenarios apply.
- Please take care of yourselves. Get good sleep. Eat well.
- Give generously where and when you can.
- If any of your friends or family members could use financial guidance right now, forward them this message and encourage them to use the link below to schedule a complementary introductory meeting with us. We are available to help those you care about and appreciate your continued trust in us.
