There’s a lot of negativity in today’s world – The morning newspaper begins the day with negativity, followed by the morning news programs, ongoing pandemic coverage online and governmental press conferences. It’s enough for many people to simply wish to shut down and say ‘enough’.
As I sit here in a family guest room working remotely with clients, I can easily sense their frustrations about being cooped up at home, unable to live their lives with the freedom we all just naturally take for granted.
I can see it when I’m going to the store for groceries. We’re all hearing the same message coming over the store intercom between the muzak: Attention all shoppers, please keep your trips to this store to once per week and only with a single family member per trip.
I can see it in myself. I’m the boss, right? Why am I working these extra hours, getting up, as I usually do at five a.m. and then working past six? It’s because I don’t want you to have sleepless nights about something that I can help control. Your job is your life. My job is assisting you with your financial life.
People who know me, know that I am not a risk-taker, especially with other people’s money. I often will refer to a well-diversified portfolio as a multi-piston engine. You simply can not have all of the pistons firing at the same time, even during good times. Do you want the ride to be as smooth as we can make it, even when we’re plowing through the rough pothole filled roads of a pandemic? Right now, it feels like we’re driving off-road in a Hummer. We all hope for the days when it might feel like we’re on a newly paved road in a luxury sedan. Different terrains require different vehicles. Are you trying to drive your financial life with only one financial vehicle?
We all need diversification of financial vehicles, including a place for your ‘safe’ money.
When I began my career, a generation ago, we always talked about safe money first. This has helped many clients weather many storms.
Many of our clients heeded our advice by beginning with a rugged mutual insurance company whole life insurance policy to protect themselves and to protect their families. Now, many of those same individuals have, not three months of income saved, not six months of income liquid, not nine months of income available, but many have a year or more money that’s safe and liquid right now, if its needed during times like these.
Someone once asked, when was the best time to plant an oak tree. The answer was thirty years ago.
Do you know when the second-best time to plant an oak tree is? Today.
And so, it is, with a place to store your ‘safe’ money. You begin, by beginning today
Thank you and stay well.