{"id":6509,"date":"2020-04-03T13:47:49","date_gmt":"2020-04-03T18:47:49","guid":{"rendered":"https:\/\/schenkelberg.investments\/?p=6509"},"modified":"2020-04-03T13:48:00","modified_gmt":"2020-04-03T18:48:00","slug":"financial-planning-during-a-volatile-market","status":"publish","type":"post","link":"https:\/\/schenkelberg.investments\/?p=6509","title":{"rendered":"Financial Planning During a Volatile Market"},"content":{"rendered":"\n

Anxiety has been high for all individuals across\nthe globe. We are all worried about our health, the health of loved ones, the\ncare of important health care workers and other individuals on the front lines.\nNot to mention the immediate scarcity of some grocery products (many may never\nstock their house with less than a month\u2019s supply of TP again), potential loss\nof income and, finally, the state of investment accounts.<\/a><\/p>\n\n\n\n

Now that I have you all worked\nup, let\u2019s review the current financial planning situation. Does this market\ndrop derail all of the financial plans we have been working hard to achieve?\nNot likely. When we put together a long-term financial plan, the planning\nsoftware looks at 1,000 different sequences of past returns. So, drops like we\nhave recently seen are expected.<\/p>\n\n\n\n

Bear markets are common\nthroughout history. The chart below maps out bull and bear markets since 1932.\nIn fact, we have been very fortunate to enjoy the longest bull market in\nhistory since March 9, 2009. 2019 saw very strong market returns. Despite the\nsharp market drop, the S&P 500 closed the quarter at a price we last saw in\nJanuary 2019. That is not that long ago.<\/p>\n\n\n\n

\u201cBuy low, sell high\u201d is a common\ninvestment quote. Now is a great time to consider putting cash to work. JPMorgan\nput together numbers that illustrate the return opportunities if we are to\nreturn to the market high from price levels at Friday, March 27, close. The\nnumbers show the annualized expected return. If it takes us one year to return\nto the recent market high we would achieve a return of 35.2%. Even if it takes five\nyears to get back to the recent market high, we would achieve an average annual\nreturn of 7.9%. <\/p>\n\n\n\n

For clients who are retired, or\nare looking to retire soon, keep in mind that you do not need to withdraw and\nspend every dollar of your funds right away in retirement. There is time to\nrecover. Staying invested is very important in this situation. For many\nretirees, you may be investing these funds for at least another 10 years. For\nrecent retirees, you may be looking at another 30 years of investing. <\/p>\n\n\n\n

While focusing on the long-term\nis extremely important, there are some key financial planning steps that can be\ntaken now to ensure your financial plan has the best opportunity for success. A\nfew items that I am looking at for clients include:<\/p>\n\n\n\n