Welcome to another edition of Financial Fitness Fridays, where I share a few words of financial wisdom to help put YOU back in the driver’s seat of YOUR financial future.
Today is Friday, October 9th, and I’d like to share and emphasize a message put out in a blog by Kim Butler over at Partners for Prosperity.
“Election 2020: Prepare for Economic Danger and Opportunity”
I bash the media all the time for using sensationalized headlines… then I turn around and use one like that?! Listen, this isn’t meant to be a fearmongering message.
Am I predicting that we are about to enter a 5-year bear market and the next Great Depression? No, of course not.
But as a financial consultant, it would be irresponsible of me to have a planning process that didn’t include planning for uncertainty, and for possible dangers that could lie ahead.
Look at what happened earlier this year, as the pandemic worked its way around the world, and we didn’t know what it was. Many investors were caught off guard, losing huge sums of money in the fastest bear market crash ever.
But there is a saying that goes: “Pay attention or pay with pain.”
Many paid with pain.
But in contrast, others were paying attention! They avoided losses by repositioning assets and reducing risk.
Some even benefitted by having access to cash, stored on the sideline, where could re-deploy that cash when stocks and other assets took a dive.
In a few weeks, there is another event on the horizon that has the potential to bring volatility and uncertainty to the markets.
Like the upheaval in March, we must pay attention and be prepared.
Election 2020: Will there be a clear winner?
Perhaps more than any other election in our lifetime, this year’s presidential race could be fiercely contested, and we are likely to not know who the true winner is until days – or even weeks – after Election Day.
And in the current political climate, that could get ugly…
Both sides are gearing up for a potential disaster, warning of voter fraud, ballots found in garbage cans, the US postal service being sabotaged, and even accusations that the current President will refuse to leave office if his challenger wins.
But today’s message ultimately isn’t about politics. It’s about your money. It’s about your future.
The purpose of today’s blog is to get you thinking. It is to encourage you to take a look at your financial picture and see if you are confident that you can withstand potential turmoil.
When future conditions are uncertain, both institutional and retail investors tend to flee the market.
And when that happens, equities, commodities, and other assets can drop unexpectedly or experience wild swings.
It’s better to be ready for something that never happens than to be caught unprepared if it does.
*In Kim’s article, which I’ll link below, she offers 4 tips for preparation, so you don’t have to participate in the drama, and what you can do instead. 2 are directly financial, and 2 are non-financial. Here they are:
Prepare your mindset. Train yourself and learn how to keep your emotions in check. Don’t overindulge with the overly negative, fearmongering news media. Build a resilient mindset through prayer, meditation, gratitude, and focus on what will move you forward.
Focus on your inputs and associations. Read good books, such as biographies of successful people and how they overcame great obstacles. Watch powerful videos like TED talks or interviews with thought leaders and innovators. Listen to inspirational content that strengthens your faith.
She also recommends journaling about your goals and desires, and how to reach them, which I have personally found particularly helpful over the years.
Prepare your body. 2020 has been such a stressful year! Many have lost jobs or businesses. Many have been relatively isolated instead of playing sports or going to exercise classes or enjoying hobbies or gatherings.
More than ever you’ll want strong consistent routines for your health. Double down on your commitment to your diet and nutrition, supplementation, and exercise. Find a way to be physically active, whether that is something as simple as getting outdoors for a walk in the sunshine or doing an exercise video or yoga routine at home.
A healthy mind resides in a healthy body. The 2 working in conjunction can give you the energy and strength you need to make good decisions, with a clear mind, even in the midst of potential chaos.
- Prepare for Opportunity. In the Chinese language, the word crisis is composed of 2 characters. One represents danger, and the other, opportunity. It’s a fitting metaphor for volatile times, as danger and opportunity often go hand in hand.
Many wealthy people had already pulled their investments out of the financial markets when they crashed in Feb and March. (Wealthy people pay attention). And then when markets began to stabilize and rise again, they were ready to put their cash to work!
There were motivated sellers everywhere and deals to be found in equities, commodities, precious metals, real estate, and businesses.
In fact, Warren Buffet uses this same strategy with Berkshire Hathaway. Buffett has more than $100 Billion in cash… just waiting for the right opportunity!
- Prepare your assets. Kim uses the acronym C.L.U.E. when talking about preparing your assets and preparing for volatility –
Control, Liquidity, Use, and Equity.
However, this blog post is getting lengthy, so let’s stop there. We will continue next week, with the 2nd half of this blog series, and take a deeper dive look at the C.L.U.E. concept.
In Summary, it is always good to be prepared for volatile times. Prepare your mind and body for the inevitable challenges that lie ahead. Prepare your money for protection and profit. And prepare yourself for the opportunity that will arise, especially if you are ready for them!
In these trying times, it’s imperative that you’re getting professional advice and professional management, so don’t try to go it alone.
And if your current firm or advisor isn’t talking with you about these issues, or isn’t giving you the kind of guidance & service that you want and deserve, you owe it to yourself to get a 2nd opinion.
At Sneller Financial Services, LLC, we care about YOU – and making sure that you are taken care of.
That’s why we’ve partnered with one of the top Investment Advisory firms in the nation, Retirement Wealth Advisors.
Working together, we strive toward getting you the very most out of your investments to help you reach & exceed your goals.
If you’d like to talk about any of the topics discussed, please give me a call at 248-241-6826, email at ronald.sneller@snellerfinancial.com, or message me on social media.
Thank you for taking the time to read this blog post! Have a great weekend and be well!
-Ron
P.S. If you haven’t checked it out yet, please stop by my mini online seminar How Retirees and Pre-Retirees Can Potentially Avoid Going Broke While Keeping Their Nest-Egg Secure! Tons of great information and bonus is it is 100% COMPLIMENTARY!
*Kim Butler’s blog article: https://partners4prosperity.com/election-dangers-and-opportunities/?fbclid=IwAR2UwDE3IHmDgD1vGJ6tWyyhrmiMjnfkgSe4hyQFmKlthK5UVQo55rS8qOQ
Comments are closed