Market is Down. What Can You Do? – Ep. 105

Her body has uncontrolled movements because newborns have an immature nervous system. Their legs and arms will involuntarily twitch for a few months as their body grows. At times these movements prevent her from going to sleep.

Maybe this is where swaddling came from, but Mallory has never liked the ideas of containing the baby’s arms in the swaddle. Her thought is if the baby rolls over to the corner of the bassinet maybe she could right herself if she could use her arms. I can’t argue with that but what do you do to prevent the blasted twitching?!

Google always has the solution, right? Mallory found a thick suit for Ansley to wear when she sleeps. She looks like a baby astronaut. I bet she could launch into space!

It’s weighted and quilted so she doesn’t startle as much and cannot flip herself over. It helps her fall asleep and stay asleep. I would pay triple what we paid for it, because extra sleep is priceless.

Our idea of successful retirement planning is creating a proverbial space suit for our clients that insulates them from twitches in the financial markets that we can’t control.

We create a buffer that allows our clients to know that they have a stable bucket of money available to them for income and expenses. This bucket of money is productively growing and can be drawn down over ten years.

After we have our income and expenses bucket of money taken care of, we use another bucket of money to participate in the stock market.

If the market has a correction like this year, our client’s have the benefit of having ten years to recover. The market has always come back, but that does not prevent short-term pain. With our first bucket we lessen the pain of market losses.

When the hard times in the market happen we begin hearing pundits preach about how it’s a unique period or this has never happened before. I normally don’t give that train of thought consideration but I recently read a compelling rationale for this actually being a unique correction.

Peter Mallouk is an author and CEO for a financial services firm that manages north of $210 billion. He said in a recent interview, “I think it’s a more complicated time than normal,” noting key differences between this year’s market downturn and the past four bear markets. (Mallouk pictured below.)

 “‘These were four very scary bear markets but they all had one thing in common: They all had a single cause,’ Mallouk said, citing the tech bubble, 9/11, the 2008-09 financial crisis, and the 2020 coronavirus pandemic.”

“In the past four bear markets, the Federal Reserve ‘was on the investor’s side’ and pumping money into the system, Mallouk said. Now, given high inflation and low unemployment, ‘this is the first bear market in a long time when the Fed is on the opposite side and wants the market to cool down,’ he added.”

Our goal as a company is to insulate our clients as much as possible so that they can be less affected when things are haywire.

If we are only using one or two financial tools for retirement planning we may be disappointed when the hard times in the market come. We strive to be holistic and comprehensive in our approach to allow our clients to have the greatest opportunity at success.

Whenever you’re ready to learn more about our process, please give us a call at 864.641.7955. We’d be happy to share with you our unique Excel in Retirement process.

Until next week,

David C. Treece,

Financial Advisor

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