Broker Check

What We're Doing - March 26, 2020

Our everyday lives have changed dramatically over the last few weeks. We've all been making efforts to minimize the effect of the COVID-19 pandemic while trying to establish some semblance of normalcy. While you're waiting for the skies to clear (both literally and figuratively), we want to share how we're spending our days: 

Separating Fact from Feeling

Remember when we showed you the mountain charts that went up and down as we toggled those "what if" scenarios? We are refreshing your financial plans in real time, updating them with current account balances to model the impact (if any) to long-term investment plans. It's normal to feel anxiety during volatile times but we combat it with data. If you ask, "Should I be making changes?" our answer is "Let's look at your plan and income needs." Which brings us to our next action... 

Connecting the Dots

Your financial plan tells us two crucial pieces of information so we can assess your portfolio.  

1. What is the purpose of your investments?

2. When will you need these funds? 

If the answer to #1 is retirement income, then #2 is extra important right now.Someone 30 years from retirement may be wanting to buy cheap stocks right now, whereas someone retiring this year might feel like they should sell. We have generally recommended any money you need within 3 years be in fixed (or very conservative) investments and your portfolio be diversified. Ideally, bonds also provide a hedge against the market drop and cash (money market, savings accounts, etc) give you short-term liquidity. Which brings us back to timing. 

Let's use a simple illustration: If you're retired with a 60/40 portfolio (60% stocks, 40% bonds/cash), and you're withdrawing 5% of your nest-egg per year, that gives you around 8 years of income before you would need to sell your stock portion. Although we don't know the full economic implications to come, the average breakeven historically after every bear market since 1928 has been around two years. This is where diversification gives you the ability to ride out market volatility without having to sell at the wrong time. 

We believe the severity of how this crisis affects your personal financial life will be a result of the planning you have put in, and we're here alongside you in the process. 
As always, feel free to reach out to us at any time to schedule a video chat or phone call appointment at Steph@bridgequest.com.

Sincerely,

Matt & Greg

Important Information: Securities and Advisory services provided by LPL Financial, member FINRA/SIPC. This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.

BridgeQuest Wealth Strategies

Career changes, retirement, aging parents, liquidity events—navigating life’s big transitions gets much easier with an experienced guide. The BridgeQuest team leads you in the right direction with independent asset management tailored to your goals. Your plan will include objective advice and personal attention every step of the way.