I'm developing a new website (www.allgoodfin.com) for my practice (new version coming soon to replace the present one!), and for it, I've shot an introductory video that will enable referrals and friends of clients to learn more about me and my approach to financial planning. It's available on YouTube via the following link ... https://lnkd.in/gwB67-4.
Let me know how you like it and feel free to post it or pass it along to others you think might benefit from learning about my practice.
At a time when the markets have been near their all-time high's and volatility is rising, I've been sharing a couple of ideas that seem to be resonating with many and have some very attractive benefits longer-term at attractive cost profiles ... one of them costs $0 if you stay with it for a few years! Feel free to call me if you'd like to learn more about those ideas. All the best!
Home | Allgood Financial
Home | Allgood Financial
Home | Allgood Financial
Home | Allgood Financial
Home | Allgood Financial
See more at
allgoodfin.com
https://www.linkedin.com/pulse/wash-your-hands-roger-matthew-allgood-mba-crpc-cfp-
LINKEDIN.COM
Wash Your Hands, Roger!
https://www.linkedin.com/pulse/wash-your-hands-roger-matthew-allgood-mba-crpc-cfp-
LINKEDIN.COM
Wash Your Hands, Roger!
“Wash your hands, Roger!” So went the line in a famous Lava Soap commercial from the early 1970’s for those of you who might remember that. It was good advice then, and it’s obviously good advice now with what’s going on with the coronavirus. It’s usually a good idea to do what one can to mitigate risks when possible, and that’s what the hand-washing advice is all about. Of course, such provisions are obviously most effective when they’re taken BEFORE the presence of risks are either apparent or even imminent.
With what’s going on in the markets, it may seem a little late to be talking about risk mitigation now, but then again, it’s unclear at this juncture just how much farther the market decline may have to go. And it’s also anyone’s guess how long it will take to recover when the inevitable bottom is reached.
Against that backdrop, I thought it worthwhile to remind you of some of the steps we’ve already taken to blunt the impact of risks like the current sharp decline in the equities markets. As clients of mine should all know by now, there is value in having a diversified portfolio. Whether you have allocations to non-traded alternatives, which have “held their own” in many cases during this downturn, or to bond funds, some of which have even gone up in value during the last couple of weeks, situations like the present environment prove the value of having various allocations to different kinds of investments, even if their inclusion among your holdings may have reduced your “upside capture” during higher growth periods, like the time that preceded this recent downturn.
With the way math works, the avoidance of losses can be of great value over a full cycle of ups and downs. After all, making up a 10% loss may only take an 11.1% gain to get back to even, but if that loss grows to 25%, it takes 33% to get back to even … and if losses mount to as much as 33%, the required gain zooms to 50% before you break-even!
That’s why portfolio construction is so vital … because it can be done with some thoughtful effort and some knowledge about the options available. Timing the market, on the other hand, is something no one’s been capable of managing to do on a consistent and recurring basis. Oh sure, there have been notable examples of select individuals making great returns once or twice on what proved to be the right call at the right time … but those are exceptions to the norm and you generally do not see them replicating that feat over and over.
When I use the term “portfolio construction”, I’m actually speaking about more than just asset allocation choices. Not only does the allocation percentages to stocks, bonds, real estate, cash (and potentially other asset classes) make a difference to the way your portfolio will behave in various market conditions, but the way you’ve gone about obtaining such exposure can make a difference as well.
After all, modern product choices can help. For example, there are trend-following tactical funds, which will systematically adjust your allocations during sharp down-turns like the current one, and then begin to average back in shortly after the market has registered a period of gains, all according to a pre-arranged set of rules you can examine in advance. And then there are certain indexed annuities that afford certain limits to upside participation in exchange for either “buffers” or “limits” to losses on the downside. Not all of these are as costly anymore as you may have become conditioned to believe, and some offer income guarantees that may be attractive in an era of very limited to almost-non-existent pensions. There are also structured products that can offer similar propositions over even shorter terms and do not “tie up” your capital to age 59.5 or beyond to avoid extra taxes upon withdrawal. And these are just a few of the many options available in the marketplace today.
If some of those ideas do not sound familiar to you, and you’d like to learn more about them, feel free to give me a call. It could be you have additional “portfolio construction” options for mitigating some of the inherent risks commonly associated with being an investor. Not all of them are right for everyone … and it makes sense to really explore the pros and cons of each before implementing them into your own portfolio. But I’m happy to explore with you ways to mitigate risks and to seek the proper trade-off between risks and rewards that are typically part of your investment picture.
Meanwhile, I’d encourage you to keep some perspective about you in the present turbulence. Even if the specifics of this episode may differ from other seemingly similar ones in the past, I believe most of us can say we’ve been through some other “interesting times” and have emerged from them having learned something, and having recovered in due time. This, too, shall pass. Oh, and did I say you should “wash your hands, Roger?”
***********************************************
The information provided here is for general information only and should not be considered an individualize recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
Past performance is no guarantee of future results.
There can be no guarantee that strategies promoted will be successful and no guarantee of positive results.
Any economic forecasts set forth in this material may not develop as predicted.
Asset allocation does not ensure a profit or protect against a loss.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Cautionary story about Student Loans Forgiveness Programs and their exacting requirements to qualify ...
CNBC.COM
She was expecting to get $40,000 in student loans erased — then this happened
I could have said this myself (and often do), but it's great to see it corroborated by others who don't have a stake in my business! Feel free to pass this along and encourage folks to ask me if they have any questions ... consultations are free! -- Matthew Allgood
401KSPECIALISTMAG.COM
Surprise! Financial Advisors Serve a Purpose: Franklin Templeton - The 401k Specialist
Think you’re saving money by not having health insurance? Think again. Medical debt can be a major cause of financial woes. Read more now.
ALLGOODFIN.COM
The Cost of Medical Care
Watch this 1-Minute Video to learn: How to Strategize For Your Social Security Benefits
Concerned about identity theft? Some things to leave at home. #IdentityTheft
ALLGOODFIN.COM
Please Leave Home Without It
In December, stock prices rallied thanks to multiple COVID-19 vaccines and the signing of a new fiscal relief bill.
ALLGOODFIN.COM
Monthly Market Insights | January 2021
The #StockMarket has a long and storied history, from the Dutch East India Company to Wall St.
ALLGOODFIN.COM
From Boats to Brokers
How will your investments weather the ups and downs of the business cycle?
ALLGOODFIN.COM
The Business Cycle
Watch this 1-Minute Video: The 3 Stages of Your Financial Life
The beans brewed for your morning coffee may have changed hands many times #MorningCoffee
ALLGOODFIN.COM
The Economic Journey of Your Morning Coffee
Considering crowdfunding? Take time to do the research first. #Crowdfunding
ALLGOODFIN.COM
Crowdfunding—Capital for the 21st Century
Prescription coverage is handled under Medicare Part D. Unsure if you need this coverage? Read on to learn more:
ALLGOODFIN.COM
Prescription Drug Benefits Under Medicare (Part D)
As January came to a close, stocks were mixed as attention shifted to unprecedented activity around a handful of companies with short-interest positions.
ALLGOODFIN.COM
Monthly Market Insights | February 2021
You can help ensure that losing your wallet doesn't turn into something bigger.
ALLGOODFIN.COM
What to Do When You Lose Your Wallet
Why is Laddering a Smart Strategy For Your Finances? Find out in this 1-Minute Video tip:
