Excel in Retirement
Market is Down. What Can You Do? Ep. 105
Our idea of successful retirement planning is creating a proverbial space suit for our clients that insulates them from twitches in the financial markets that we can’t control.
We create a buffer that allows our clients to know that they have a stable bucket of money available to them for income and expenses. This bucket of money is productively growing and can be drawn down over ten years.
After we have our income and expenses bucket of money taken care of, we use another bucket of money to participate in the stock market.
If the market has a correction like this year, our client’s have the benefit of having ten years to recover. The market has always come back, but that does not prevent short-term pain. With our first bucket we lessen the pain of market losses.
When the hard times in the market happen we begin hearing pundits preach about how it’s a unique period or this has never happened before. I normally don’t give that train of thought consideration but I recently read a compelling rationale for this actually being a unique correction.
Peter Mallouk is an author and CEO for a financial services firm that manages north of $210 billion. He said in a recent interview, “I think it’s a more complicated time than normal,” noting key differences between this year’s market downturn and the past four bear markets.
“‘These were four very scary bear markets but they all had one thing in common: They all had a single cause,’ Mallouk said, citing the tech bubble, 9/11, the 2008-09 financial crisis and the 2020 coronavirus pandemic.”
“In the past four bear markets, the Federal Reserve ‘was on the investor’s side’ and pumping money into the system, Mallouk said. Now, given high inflation and low unemployment, ‘this is the first bear market in a long time when the Fed is on the opposite side and wants the market to cool down,’ he added.”
Our goal as a company is to insulate our client as much as possible so that they can be less affected when things are haywire.
If we are only using one or two financial tools for retirement planning we may be disappointed when the hard times in the market come. We strive to be holistic and comprehensive in our approach to allow our clients to have the greatest opportunity at success.
Whenever you’re ready to learn more about our process, please give us a call at 864.641.7955. We’d be happy to share with you our unique Excel in Retirement process.
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program.
Our idea of successful retirement planning is creating a proverbial space suit for our clients that insulates them from twitches in the financial markets that we can’t control.
We create a buffer that allows our clients to know that they have a stable bucket of money available to them for income and expenses. This bucket of money is productively growing and can be drawn down over ten years.
After we have our income and expenses bucket of money taken care of, we use another bucket of money to participate in the stock market.
If the market has a correction like this year, our client’s have the benefit of having ten years to recover. The market has always come back, but that does not prevent short-term pain. With our first bucket we lessen the pain of market losses.
When the hard times in the market happen we begin hearing pundits preach about how it’s a unique period or this has never happened before. I normally don’t give that train of thought consideration but I recently read a compelling rationale for this actually being a unique correction.
Peter Mallouk is an author and CEO for a financial services firm that manages north of $210 billion. He said in a recent interview, “I think it’s a more complicated time than normal,” noting key differences between this year’s market downturn and the past four bear markets.
“‘These were four very scary bear markets but they all had one thing in common: They all had a single cause,’ Mallouk said, citing the tech bubble, 9/11, the 2008-09 financial crisis and the 2020 coronavirus pandemic.”
“In the past four bear markets, the Federal Reserve ‘was on the investor’s side’ and pumping money into the system, Mallouk said. Now, given high inflation and low unemployment, ‘this is the first bear market in a long time when the Fed is on the opposite side and wants the market to cool down,’ he added.”
Our goal as a company is to insulate our client as much as possible so that they can be less affected when things are haywire.
If we are only using one or two financial tools for retirement planning we may be disappointed when the hard times in the market come. We strive to be holistic and comprehensive in our approach to allow our clients to have the greatest opportunity at success.
Whenever you’re ready to learn more about our process, please give us a call at 864.641.7955. We’d be happy to share with you our unique Excel in Retirement process.
Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Clients Excel, LLC are not affiliated companies. Investing involves risk, including potential loss of principal. Any references to protection, safety, or lifetime income, generally refer to fixed insurance products, never securities or investments. Insurance guarantees are backed by the financial strength and claims paying abilities of the insuring carrier. This podcast is intended for informational purposes only. It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet particular needs of an individual’s situation. Clients Excel is not permitted to offer and no statement made during this show shall constitute tax or legal advice. Our firm is not affiliated with or endorsed by the U.S. Government or any governmental agency. The information and opinions contained herein provided by third parties have been obtained from sources believed to be reliable, but accuracy and completeness cannot be guaranteed by Clients Excel. The use of logos and/or trademarks of podcast hosting sites are the property of their respective owners and are not an endorsement by those owners of our firm or our program.