Month: March 2022

What’s the Magic Word?
graphic shows a bright blue exclamation point with arrows pointing at it on a brick wall

An acquaintance of ours is a real charmer with her friends’ children. At her house, when adults ask children for “the magic word,” they don’t answer, “Please!” 

Instead, she teaches them to answer, “Now!” And everyone dissolves into laughter. 

“Now!” from a spunky child doesn’t carry as much weight as, say, an angry manager barking orders to an employee or a firefighter at an emergency yelling instructions. 

But “Now!” gets thrown around fairly often. Our mail, our pop-up ads, and even our dentists insist they need our attention immediately. We simply must respond to this limited offer, this overdue action, this short supply. 

Manufacturing urgency where there is none is a tactic. It compels us to turn our attention to whoever shouts “Now!” the loudest. And it can be startling. 

Fear as a mode of motivation may “work” in the short term—it can really get people moving, right away—but a person can’t sustain the fear state. Fear triggers the part of our brain that wants to react quickly and prioritize survival. Maybe you’ve heard about those reactions: fight, flight, or freeze. 

But fear is not a long-term mode of persuasion. Shaping others’ behavior has to happen with their consent and participation, over time. Habit changes, for instance, can’t be ruled by fear alone: there must be something providing positive reinforcement. 

Hope, ease, intrinsic motivation—something of personal meaning must be present in any financial goal or financial habit. Otherwise, why would you do it? 

Clients, people will shout “Now!” for all sorts of market reasons. We know to be wary. The shouting can be a sign of a stampede, sell-off, or unwarranted turmoil. 

But don’t take our advice without investigating for yourself—even if we say, “Please!” 

Questions for us? You won’t get scare tactics from us. Call the shop or write. 

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What's the Magic Word? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

How Teamwork Makes the Dream Work

The team at 228Main.com is growing! You might get to see a new face or hear a new voice, courtesy of our partners at LPL. Let me introduce our latest client services teammate.

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Keeping a Singular Focus in a Global Whirlwind
graphic shows a whirl of light points circling a blue outline of the globe

Clients, some of you have reached out to talk about the latest global developments and their implications for our work together. 

We’re watching the news carefully, like everyone else. The hopeful view, if there is one, is in the vibrant and quick response by NATO, the EU, as well as what might be called a Western alliance and our allies around the world. These organizations are responding to a situation which could clearly continue to escalate. And those American politicians and media platforms most influenced by Russia do not seem to have much sway in shaping public opinion overall, thank goodness. 

Ukraine was said by some to be a threat to Russia, for talking up increased ties to NATO and the EU: this is a pretense to reframe aggression as prevention. Putin is like the farmer insisting he doesn’t want to buy all the land—just what adjoins his own. If Ukraine were assimilated by Russia, then would Poland pose a similar threat next? And then maybe Germany and France in turn? 

Russia’s economy is small, as a share of global trade. The problem is in the raw materials and energy on which the rest of the world has come to rely. Ukraine likewise is a significant exporter of crops and natural resources. The disruption to these markets will probably exacerbate inflation; a recession may well result. (Remember, though, that one is always on the way.) If energy costs, for instance, continue to rise—and they could—it is hard to see how the sales of all other goods and services avoid shrinking. 

It is also important to remember that, technically, a recession is a decrease of any size in GDP for two quarters running. So if we had a quarter where we were at 99% of the record quarter before, and then did 1% less again the next quarter, that’s a recession. So we should never assume “what the next recession will mean” without some context and perspective. 

The crosscurrents in the markets have been vicious. We’ve made portfolio changes cautiously, of course. We always want to make sure we can meet your needs for cash flow while keeping your long-term goals in the picture. 

The key thing is, we can meet your need for cash flow without selling anything at a bad time. We can wait out a downturn whenever it comes, and we’ll seek to make the best of it by swapping into holdings likely to recover the fastest. 

No guarantees. But clients, you’re watching things; we’re watching things. Call or email me with questions or concerns.

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Keeping a Singular Focus in a Global Whirlwind – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Choosing the Slow Way, Or, See Ya Soon?
photo shows a sunset on a beach in Pinellas County, Florida

I recently drove to a business conference in Florida, more than 1,500 miles from home. It would have been much faster and cheaper to fly. But saving time and money were not on my list of objectives.

In fact, it took six days to get there. There were visits with clients along the way—sharing meals at their favorite restaurants, talking and laughing and commiserating about life and world events and markets and more.

As we learned more about each other’s plans for the future, a wide range of topics emerged. We talked about Social Security choices, long-term investing in perilous times, how to pay for increasing expenses in retirement, the snowbirding life, downsizing homes.

These weren’t theoretical discussions, either. These are real people living their real lives, making real decisions. It was affirming for me to be greeted so warmly, and to experience “IRL” just how our work has helped people with their plans and planning.

The trip was a roaring success by the measures I care about: happiness, gratitude given and received. (And I wrote this reflection even before the conference started!)

Two lessons so far:

  • It really is the journey, not the destination, as they say.
  • And there is nothing like being there.

We’ve all done a lot of phone calls and email exchanges and Zoom conferences over the past couple of years, but human contact does a very different job for our souls.

Then next, I had a few days at the conference, and then the journey home—the long way, of course, with many more stops. With the team we have to keep things running smoothly at 228 Main, I’m thinking more travel is in my future. I may be seeing many more of you in the months and years ahead.

In the meantime, when we can help in any way, please email us or call.

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Choosing the Slow Way, Or, See Ya Soon? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Time Machines and Time Capsules

Both could serve their purpose, but which sounds more useful, more versatile: a time capsule or a time machine? Well, the two might have something to teach us about our investment vehicles. More on the blog.

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Solid Ground and Serious Conflict

You’ve heard us talk before about not getting caught up in panic. It goes to one of our core principles, the idea of avoiding stampedes.

It gets a little complicated when we’re talking about world events that are so immediate. Conflict can be deadly and do serious damage, and the effects reach us all—whether we realize it or not.

We’re in a moment where the business headlines and market volatility are more stark than usual. It can feel disturbing, like things are less certain than ever.

But those of us just beyond the emergencies have an opportunity to reflect. What an important time it is to make sure that our goals, our values, and our resources are aligned. Are we focusing our efforts within our sphere of control? Are we investing in those causes we believe will be of service in this world?

Perhaps it’s how we keep panic from our hearts: find stability in being the most you that you can be. The dust will never settle if we insist on all the pacing, jumping up and down, or spinning in circles.

Invest wisely, spend well. It goes for our money and our attention. The leap to panic is a shorter—but way more costly—trip.

When you need to talk through anything troubling, please reach out.

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Solid Ground and Serious Conflict – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Here We Grow Again: Welcome, Whitney!
headshot of Whitney Engle

One of the blessings of our enterprise is the way it grows, by word of mouth. One friend helps another by introducing them to us, or putting them on our email newsletter list, or forwarding a blog post. When we focus on growing your buckets and meeting your needs, our needs get met. 

Growth brings challenges, of course. We have staffed up from time to time in recent years to continue taking care of the business. Now we are embarking on a new and more flexible arrangement. A few benefits to our latest expansion: 

  • We get the expertise we need to keep our operations and logistics flowing more smoothly. 
  • We add another lovely teammate to help serve the best clients in the whole world! 

With that in mind, we want to welcome the newest member of our team. Whitney Engle comes to us by way of LPL Financial’s Administrative Solutions program. She is a full-time LPL employee, well-versed in all the systems and processes. She now works with us from afar, though the distance is no obstacle. Phones and email help bring us together; it’s one thing I learned with all of you in the last chapter of life. 

I believe the core activities of our enterprise are investment research, portfolio management, and talking to you. But nothing happens until the details are handled, and they are crucial. So Whitney is joining a client services team—along with Patsy Havenridge and Larry Wiederspan—that plays a vital role. 

We’re grateful for Larry’s long service; hard to believe it goes back eight years! And Patsy, four years in, has been a joy to have in the shop. With Whitney’s help, we are better equipped than ever to take care of business. 

Whitney will assist us with paperwork and logistics: it’s the work we may need to create new accounts, monitor requests, interface with mutual fund companies, guide us through home office processes, and help with a variety of other tasks. 

When she’s not hard at work, Whitney tells us she enjoys spending time with her two boys, taking care of a menagerie of animals at home, and cruising the country roads on a skateboard. 

Another friendly face joins the team, and we are glad to have access to a talent like Whitney through our partners at LPL. We’re looking forward to an arrangement that’s good for you and good for us. For the months and years ahead, staffing is key to helping us help you. So we’d like to offer a hearty welcome to Whitney! 

Clients, when we need to chat about anything, be sure to reach out—anytime.

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Here We Grow Again: Welcome, Whitney! – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Growing Market Geniuses
photo shows two silvery arrows pointing opposite directions on a yellow background

Author F. Scott Fitzgerald wrote, “the test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function.” 

What if I told you—the best clients in the world—that you (yes, each and every one of you) have that first-rate intelligence? 

See, there’s something in our work together that tests this idea, just about on a daily basis. When you join us, you learn to live with the volatility in the market: it goes up and down, and we accept this as a feature of the ride. 

Very often, it goes down faster and deeper than it goes up. We may expect a 5% drop around three times a year: we might see a 10% drop around every two years. Meanwhile, gains of 10% are few(er) and far(ther) between: we’ve only seen it twice in the S&P 500 this century and only four times in the whole of the last century. And those gains have usually come shortly after one of the big drops. 

But we wouldn’t be in this business if, in the long run, the market went down more than it went up. 

So what gives? There are two seemingly opposing ideas about the market: 

  1. Drops go down faster, farther than gains go up.
  2. It goes up more than it goes down. 

Clients know the secret: the first idea is all about daily events, and the second idea is about the long haul. No guarantees, of course, but it is possible that these things can both be true. We just care less about the former. 

Therefore, if you consider yourself a member of the best client base in the world, then I consider you to be of first-rate intelligence. 

We’ve grown a community of geniuses here at 228 Main. Want to talk more about what this means for you? Write or call, anytime. 

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmapped and my not be invested into directly. 

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Growing Market Geniuses – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.

Is Your Relationship in Trouble?
photo shows a stack of thin magazines on a white table

Friends, it’s been a good many years since any lifestyle magazines could be found in my home. Remember magazines? Glossies?

I was reminded of them recently.

Marketing for financial services is regulated in various ways. Bodies like the SEC work toward protecting investors. Still—advertising for financial advisors sometimes twists the ideas in our minds the way the glossies did and do.

Magazine covers ask the questions that beg the question.

  • Is your relationship in trouble? (“Oh, what if it is? I better take a peek inside…”)
  • Looking to fix your problems fast? (“Well, I suppose there are things I could work on…”)
  • Need help finding expert tips? (“Can’t say no to that…”)

There are assumptions and judgments packed into such questions. They suggest that you have problems, you must address them quickly, and you require assistance from the preapproved authorities. But it’s not only beauty and fashion pros who ask these questions.

I hear the same thing in ads for financial services.

Most folks don’t need any pressure added to their financial relationships. Life’s big changes and hardships bring enough challenge, don’t they?

On the contrary—what a wonderful phrase!—we prefer to share the load. We like taking these journeys with you. We enjoy connecting you to resources you want and not the ones we “prescribe” or insist upon. Partners in the process is what we strive to be.

Clients, we’ll help acquaint you with reality as we see fit, but it will be just one version of things. And you have to live in your reality of things. We’re grateful to be part of it.

Let’s chat, anytime.

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Play the audio version of this post below:

Is Your Relationship in Trouble? – 228Main.com Presents: The Best of Leibman Financial Services

This text is available at https://www.228Main.com/.