Money Minutes for Doctors #50 ~ The State of Affairs – Current Market Positions & Thoughts to the Future
“RUN AWAY!! RUN AWAY!!!” ~ Arthur, King of the Britons
Certainly not! In our 50th edition of Money Minutes for Doctors we examine the current state of affairs in our economy. The smart money is hinting that they are not sure if we have hit the bottom of the canyon…but we may very well be near. That said, it is generally a given that we are experiencing an unprecedented fire sale on stocks. Be aware though, it looks as if a recession is in the cards coupled with consumer confidence severely on the rocks. Ms. Katherine Vessenes, CFP®, RFC, Founder and President of MD Financial Advisors, cautions against running away from the Killer Rabbit that is our economy right now so that you do not miss the return. Enjoy our 50th discussion of all things finance…
About Ms. Vessenes:
Ms. Vessenes works with over 300 physicians and dentists from Hawaii to Cape Cod. Her firm uses a team of experts to provide comprehensive financial planning to help doctors build their wealth and protect their wealth while reducing taxes now and in the future. Katherine is a longtime advocate for ethics in the financial services industry; and has written three books on the subject of investment strategies. She has received many honors and awards including: numerous tributes from Medical Economics as a top advisor for doctors, multiple 5-Star Advisor Awards, honored as a Top Woman in Finance, in addition to being selected to be on the CFP® Board of Ethics. Katherine can be reached at: Katherine@mdfinancialadvisors.com or 952-388-6317. Her website: www.mdfinancialadvisors.com.
State of Affairs – Current Market Positions & Thoughts to the Future
Consensus from economists is that they are not sure if we are at the bottom of the market downturns but close. There is currently an unprecedented fire sale on stocks. There continues to be a high probability of recession and Consumer confidence at all time low however it is imperative that you stay in the market so that you don’t miss the upturn.
Prediction: Inflation is mostly over—expect to be back to normal over the next 2 to 3 years
How to deal with losses
1. What type of loss?
a. Temp or permanent
b. Evaluate your personal plan over the next 2-3 years, where will you be in your career and savings plan?
2. Is the loss temporary or permanent?
a. Permanent loss
i. Let’s use our balanced asset portfolio to make it temporary
b. Temporary Loss
i. Sell at loss—makes it permanent
ii. Hold on and wait for a recovery
iii. Throw more money into investments: we are at a fire sale!
3. Control what you can control: savings, spending
a. Know Your plan
b. Focused attention
c. Well thought out decisions
d. Consistently re-evaluating Savings/spending