Kathy Longo was recently interviewed by MoneyGeek for a piece they did on how an individual can start investing and saving their money. In the interview, Kathy provides her expertise on questions that center around investing in stocks and bonds, advice for those who live paycheck to paycheck, whether an investment app is a good idea, and more.
By Kathy Longo, CFP®, CAP®, CDFA
When I decided to start Flourish Wealth Management a little over four years ago, there was a great deal to consider and to plan for. But first I had to accept the fact that I could fail, things could turn out worse than I expected them to, the market could take a nosedive the day after we opened our doors, and my planning and effort could all be for naught. But, there was the other side, too. I might succeed, things might work out better than I had anticipated, the market might stay relatively steady, and my planning and effort might just pay off both financially and personally. For those with an entrepreneurial spirit, starting a business isn’t just about the potential for financial gain; in fact, financial opportunity often takes a back seat to the need for independence and the need and desire to create something meaningful and personally fulfilling.
An important aspect of the Flourish investment philosophy is to help our clients find the right portfolio for them. We use a variety of tools to help clients identify their risk tolerance, then match that up with their long-term financial goals to build a customized investment solution.
The following article by Dave Goetsch, Executive Producer of “The Big Bang Theory”, provides helpful perspective about the importance of staying focused on long-term goals instead of reacting to short-term market movements. This is an important concept to connect with because big market changes can affect us emotionally and psychologically. Mr. Goetsch does a nice job of summarizing his connection with market performance without using investment jargon.
If we’ve been doing our job as your fiduciary advisor, you might already be able to guess what our take is on current market news:
Still, it never hurts to repeat this steadfast advice during periodic market downturns. We understand that thinking about scary markets isn’t the same as experiencing them. For context, US stocks haven’t seen a one-day pullback of 5% since June 2006, when the S&P 500 Index was at 1,260 compared to its February 2018 level of 2,800. It’s also important to note that US equities are down 1% for 2018 despite the losses over the past couple of days and have risen 17% from a year ago.
So, what’s going on? Why did U.S. stock prices suddenly drop after over 13 consecutive months of positive returns, with no obvious calamity to have set off the alarms?
By Kathy Longo, CFP®, CAP®, CDFA
You probably have an emergency kit in the trunk of your car or in the storage space in your SUV. Jumper cables, flares and other tools come in handy if you get in an accident or are stranded on the road.
If you’re an exceptionally cautious person, you may also have an emergency kit in your home. Batteries, flashlights, bottled water and other essentials can be lifesavers in case you lose electricity or other vital services for several days.
But what if you face a financial emergency? If an unplanned event alters your financial situation—if you or your spouse lose a job, or an adult child moves back into your home—how would you manage with less income or more household expenses? What if you or someone in your family suffers a critical illness or debilitating injury? Are you and other family members ready to manage someone else’s financial affairs?
