financial stagnation

It’s Second Look—and Second Opinion!—Season
graphic shows the words "'Tis the Season" inside a magnifying glass

Clients, the markets are at a low point. It’s a prime time to revisit our holdings! Let’s take a second look. 

To be clear, portfolio reviews are part and parcel of our regular business. But these times of churn and change are a great opportunity to look more closely—and try to make sense of everything given the context. 

Conversations with some of you lately have inspired some changes. Could it be time to garner tax losses and take a different approach with some of your resources going forward? 

Our goal at 228 Main is to grow your buckets. We believe the better off you are, probably the better off we will be down the road. That’s enough for us to review and comment on your plans and planning, as well as your investment holdings and accounts. 

While it’s Second Look Season for us in the shop, could it be Second Opinion Season for anyone in your life? It could be you know folks who are paying fees for investment management when their investments don’t seem to be managed at all. Does anyone in your life have long-term investments stuck in stagnant short-term holdings? 

I often say I’m in business to talk all day. If you have questions about your holdings, I might as well be talking to you and your loved ones! And clients, please know that we have nothing to lose by your seeking a second opinion of your own. All the power to you: you are the boss of what you do with your wealth. (We seem to get all the business we deserve, and none that we don’t.) 

No matter where our resources land, remember that the markets go up and down. We won’t tell fairy tales about “minimizing risk” or getting market returns without enduring the inevitable fluctuations. We will not ignore that the price of so-called “safety” is often the loss of potential future gains. 

But we do believe in striving for long-term total returns. So we live with volatility. No waves, no voyage. No rain, no flowers. 

Clients, when you have questions about your situation, please write or call. If you know someone who would like to chat with us, let them know Second Opinion Season is in full swing, now through year-end! 

Thank you all, for everything. 

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Play the audio version of this post below:

It’s Second Look—and Second Opinion!—Season – 228Main.com Presents: The Best of Leibman Financial Services

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

It Goes Up and Down: Some Questions for a Moment Like This
graphic shows "up" and "down" on a chalkboard with checkmarks next to them

The history of the stock market can be summed up pretty well: it goes up and down. As for the future, we cannot know for certain whether it will continue to go up and down—or on what schedule—but it seems reasonable to take the liberty of guessing this whole “up and down” thing may persist.

When things are down 20% from their most recent peak, and we recognize it goes up and down, this may well be as good a time as any to invest.

We might have a recession, but current lower prices already reflect a lower outlook. You could say sentiment is already in the mix, already baked into prices. And anyway, where there’s a recession, there’s surely a recovery to follow.

Do we know the timing? Nope. But we never do. (That’s where the whole up-down thing comes back into focus.)

There is much we do not know, but we have faith that perhaps our guesses may be good enough to get by. We believe, for example, that in the future there is money to be made by companies that meet our needs. We have a hunch we will continue to eat, shop, entertain ourselves, wear clothes, go places, communicate, create, and do all those other things humans tend to do. And we have an opportunity now to invest in companies that could provide those things then.

Clients, some things to consider at such a moment as this:

  • Is there room to start or add to a Roth or IRA?
  • Should some funds in a stable-but-stagnant form perhaps be invested for long-term growth?
  • Would a Roth conversion make sense given these lower prices?

It goes up and down. And when we invest for the long run, we commit to the ups and the downs both. One never knows when the trend will change, just that it very well may.

If it’s time for you to add to long-term holdings, please email us or call the shop—anytime.

Want content like this in your inbox each week? Leave your email here.

Play the audio version of this post below:

It Goes Up and Down: Some Questions for a Moment Like This – 228Main.com Presents: The Best of Leibman Financial Services

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

Stagnation

© Can Stock Photo / stevekight

The word stagnant is an adjective used to describe things that are motionless, lifeless, lethargic, slow-moving, inactive or static, like water with no flow to it.

If these kinds of words also describe financial accounts you own, this may be a good time to get things moving. A dormant old 401(k) or too much cash parked in the bank could be in that category. Investments or advisors you don’t understand might be another sign.

A wise person once said that every past market crash looks like an opportunity. We do not have to wait until after the inevitable rebound to treat the current turmoil as an opportunity. It could be a great time to do something about the stagnant pieces of your financial puzzle. Or not. No guarantees.

(We address our communications to clients, but know that we have many eavesdroppers. To them we say, our approach is not for everyone. You can learn a lot about it here at 228Main.com, or in our Twitter or LinkedIn feeds.)

You may need to clean house in your finances or review your plans and planning in light of new information. If we might be able to help, put us to work. It’s what we do.

Clients, if you would like to talk about this or anything else, please email us or call.