3 Keys to Navigating the Current Crisis: Perspective, Planning, PatienceSubmitted by Reby Advisors | Certified Financial Planners | Danbury, CT on April 9th, 2020
By Bob Reby, CFP®, April 9, 2020
This article is The President's Letter in the Spring 2020 Newsletter. Click Here to Download.
First and foremost, I wish you and your loved ones good health during this time of uncertainty. If you have worked with Reby Advisors, I hope you know that our financial advice is designed to support the lifestyle you cherish – your well-being and happiness take precedence over everything.
So, how can we navigate this current crisis, help you remain financially secure and give you the best opportunity to achieve your goals? Through each financial storm since I founded Reby Advisors in 1985 – this is the sixth – effectively Managing Behavior has proven to be the key to long-term success.
This means avoiding buy-sell mistakes based on fear, sticking with a plan that factors in the inevitability of bear markets and looking for opportunities. I admit this is easier said than done, especially when we enter the uncharted territory of a financial storm caused by a global pandemic. In times like these, Behavior Management requires perspective, planning and patience.
Markets have always rebounded from bear markets and produced gains for investors over the long run. In 1985, the Dow Jones Industrial Average was just 1,300. Now, even in this bear market, it’s above 20,000.
Market volatility is beyond our control, so let’s focus on what we can control: understanding your income capability before and after the pandemic, refinancing any debt to take advantage of historically low interest rates and minimizing taxes through tax loss harvesting.
I often ask anxious investors how much time they have to be patient before they need the money that is currently in the stock market. Do you plan on spending your entire retirement nest egg within the next 3 to 5 years? Certainly not, they usually say. So, why don’t we focus on how we are going to access income from less volatile asset classes while we patiently await a recovery?
I am confident that the asset allocation strategies and the financial plans we have in place for clients are designed to weather this storm. If you have any questions, concerns or fears you would like to discuss, please do not hesitate to reach out to Reby Advisors. We are here for you.
To request a complimentary second opinion on your investment strategy, portfolio or financial plan, call us at (203) 790-4949 or send us an email.