To My Readers,
It is during volatile times in the market that you see who has the benefit of a plan, and who doesn’t. Those with a plan understand what they want to accomplish and how they will get there. Even though the seas may be choppy, they understand the importance of staying the course and not panicking. This is because they have figured out a plan beforehand.
For those without a plan, volatile times can be quite stressful. They have no compass or guide to point them in the right direction. Oftentimes, they don’t even know what the right direction is.
If you know someone who is anxious about the market/their investments, or someone who panic sold because of the volatility, please don’t hesitate to mention our names. We are happy to have a conversation that can hopefully alleviate their concerns.
Sid Misra, CFP®
Beacon Financial Group
Ask a Financial Advisor
In my "Ask a Financial Advisor" series, I answer questions sent in by my clients and viewers.
This particular question is very relevant to the current market conditions and volatility we are all experiencing:
“I keep seeing in the news that we are headed for a recession, if not already in one right now. It may be too late now, but in preparation for the next inevitable downturn, what can I do to recession-proof my finances?”
Watch the video to find out my answer!
By The Numbers
Leaving on a Jet Plane
On July 1, 2022, the TSA screened 2.49 million passengers which is the highest number since February 2020
Another 2.2 million were screened on 7/2 and 2.1 million on 7/3.
These increased numbers + airline staffing/other issues have led to numerous delays. Almost 27% of US-based carrier arrivals were delayed over the holiday weekend.
The period from January 1st, 2022, and ending June 30th, 2022, is one of the worst 6 month returns in market history since 1926.
Silver lining: If you have been making regular contributions into your investments (401k, IRA, Taxable accounts, etc), you have been buying into the market at prices 20% - 30% lower than they were just 6 months ago.
Who doesn’t love a sale?
Don't discount the small improvements and wins
For the Young People in Your Life
Here are 7 things young people should be doing if they want to put themselves in a better financial position:
- Manage cash flow
- Have a healthy savings rate
- Avoid too much lifestyle creep
- Find ways to increase their income
- Avoid bad debt
- Build assets/equity
- Consistently invest
Are You Compensated with Equity?
Here are some reasons you may want to consider selling your concentrated position of company stock:
You understand that keeping all of your “eggs” in one basket is not a smart investing strategy
You keep receiving more and more stock each year, increasing your already high exposure to one company
You are worried about the tax consequences and paying too much money to Uncle Sam
A quick reminder that if you are compensated with equity such as Incentive Stock Options (ISOs), Non-Qualified Stock Options (NSOs), Restricted Stock Units (RSUs), etc, we can help you develop a plan to diversify your positions and manage your taxes.
Please don’t hesitate to reach out!
The opinions voiced in this material are for general information only and are not intended to provide specific advice financial or tax recommendations for any individual.
All performance referenced is historical and is no guarantee of future results.
All indices are unmanaged and may not be invested into directly.