One of the highlights every year is attending the National Association of Personal Financial Advisors conference. This year, the conference was virtual. I missed networking with other advisers. Several of the sessions I attended focused on the needs of women.
I was intrigued this week when a story in my newsfeed headlined, “Americans’ love affair with pickup trucks might be derailing their retirement plans” popped up.
Everybody is trying to get an edge on the market and predict what it will do leading up to and after the election in November. Like many advisers, I’m getting questions from clients like this: “What does the upcoming election mean for my portfolio? What happens if the Democrats win? Are my taxes going up?
The retirement savings crisis has been growing for several years. The COVID19 pandemic is accelerating the impact.
One factor is increased unemployment and involuntary retirement among older households.
My business group uses July to take a midyear checkup. We look at our budgets, planned projects and keep one another accountable. 2020 has not been the year anyone expected.
It has been an interesting few months.
I struggled through the early parts of the pandemic with a sense of isolation and the disruption of everyday life. The past month, I have been reading “Atomic Habits” by James Clear and attending webinars on behavioral finance and practice management.
The common theme was mindset.
I was looking forward to attending the spring National Association of Personal Financial Advisors Conference last week in Denver. A bonus was the Cincinnati Reds were scheduled to play the Denver Rockies. Instead of being in Denver, I attended a virtual conference.
Sarah Newcomb, director of behavioral science at Morningstar Inc., gave a presentation on reframing retirement.
Tricksters abound in times of crisis. They are opportunistic and clever. As the COVID-19 outbreak advances, so do their efforts. According to the FBI, scammers and fraud perpetrators “see a vulnerable population out there that they can prey upon. People are scared and looking for help. People are trying to protect themselves and their families.
“History doesn’t repeat itself, but it often rhymes.” —Mark Twain
So how does our current situation rhyme with past market challenges? As I write this article, I don’t know what the weeks or months ahead hold for the stock market or the economy, but we can sometimes get clues by looking at the past.
It helps to understand the vocabulary market pundits and economists use.
I participate in a small strategy group that has monthly conference calls. This month’s focus was managing income distributions during a prolonged market downturn. The accumulation phase of retirement planning is easy: Save as much as you can as early as you can and invest in a diversified, growth-oriented portfolio.