Whether it’s a work bonus, inheritance, or proceeds from selling a business, receiving a large sum of money can leave you wondering, “What do I do with it now?” It’s natural to feel a bit stuck—especially with the market going through its usual ups and downs. Do you invest it all at once, or spread it out over time?
This is a common question, and honestly, it’s understandable. We all worry about making the wrong move—invest too soon and the market might drop; wait too long and you could miss a rally. But there’s no need to over-complicate it. Let’s break down your options.
Start with Your Goals
Before diving into the numbers, ask yourself: What do I want this money to do for me?
If you’ve got short-term goals, like paying for your kid’s college tuition in the next few years, you may want to lean toward more stable, less risky investments—think bonds, bond funds, or CDs. These are less likely to be impacted by the market’s short-term swings.
On the other hand, if this money is for long-term goals, like retirement, then putting it into the stock market might make sense. Over the long haul, markets tend to rise, despite the short-term ups and downs.
Lump-Sum vs. Dollar-Cost Averaging
Now, should you invest all the cash at once or spread it out?
Lump-sum investing gets all your money into the market right away, which could be great if the market’s on the rise. But no one can predict the future, and there’s always a chance the market dips right after you invest. If that possibility stresses you out, dollar-cost averaging (DCA) might be more your speed.
With DCA, you invest a set amount regularly—say, $1,000 a month for a year. When prices are high, you buy fewer shares; when prices drop, you buy more. It’s a steady approach that smooths out market fluctuations over time.
However, here’s the kicker: research shows that lump-sum investing tends to outperform dollar-cost averaging about 68% of the time. So, if your main goal is maximizing returns, lump-sum might be the way to go. That said, the difference in returns between the two strategies isn’t massive, so if dollar-cost averaging helps you sleep better at night, it’s worth considering. After all, the last thing you want is to panic and sell when the market dips.
The Bottom Line—Don’t Wait
Whether you go with lump-sum investing or dollar-cost averaging, the most important thing is not to delay. Holding onto cash means missing out on potential growth from stocks and bonds. And trying to time the market? That’s a tough game to win.
I am getting tons of questions right now (and every 4 years historically) about what does the election cycle mean for my investments and what should we do to ‘protect’ ourselves. These are legitimate questions coming from an honest place of concern about important matters. My answer has been pretty consistent now for over 20 years, but I could not write this any better, so I’m going to leave this to an expert. This is a must read from Dr. Daniel Crosby, Chief Behavioral Officer with Orion.He is a psychologist and behavioral finance expert with a New York Times best seller.
As the 2024 election approaches, the political noise is deafening. Campaigns are in full swing, pundits are making predictions, and market analysts are offering endless advice on how to manage your investments. However, the best strategy for your portfolio during this tumultuous time might surprise you: do nothing.
In times of great political and economic uncertainty, the instinct to take action can be overwhelming. This tendency, known by shrinks like me as “action bias,” is the inclination to favor action over inaction, especially when the stakes are high. It’s a concept that’s particularly relevant in the world of investing.
Consider the world of soccer, where goalkeepers, faced with penalty kicks, often dive dramatically to the left or right. A group of researchers examined 311 penalty kicks and found that goalies dove to the left or right 94% of the time. However, the kicks were distributed roughly equally: one-third to the left, one-third to the right, and one-third down the middle. Goalkeepers who stayed in the center had a 60% chance of stopping the ball, far greater than the odds when diving left or right.
So why do goalkeepers choose dramatic dives over the more effective strategy of staying centered? When we put ourselves in the shoes (or cleats) of the goalie, especially in high-stakes situations, the reason becomes clear. When the game and national pride are on the line, goalies want to appear as though they are giving a heroic effort. Staying centered can look like complacency, even though it’s statistically the best choice. This same dynamic applies to investors who, in times of market distress, feel compelled to act, even when inaction would serve them better.
When Vanguard examined the performance of accounts that had made no changes versus those that had made tweaks, they found that the “no change” condition handily outperformed the tinkerers. Meir Statman cites research from Sweden showing that the heaviest traders lose 4 percent of their account value each year to trading costs and poor timing and these results are consistent across the globe. Across 19 major stock exchanges, investors who made frequent changes trailed buy-and-hold investors by 1.5 percentage points per year.
Perhaps the best-known study on the damaging effects of action bias also provides insight into gender-linked tendencies in trading behavior. Terrance Odean and Brad Barber, two of the fathers of behavioral finance, looked at the individual accounts of a large discount broker and found something that surprised them at the time.
The men in the study traded 45 percent more than the women, with single men out-trading their female counterparts by an incredible 67 percent. Barber and Odean attribute this greater activity to overconfidence, but whatever its psychological roots, it consistently degraded returns. As a result of overactivity, the average man in the study underperformed the average woman by 1.4 percentage points per year. Worse still, single men lagged single women by 2.3 percent – an incredible drag when compounded over an investment lifetime.
The tendency of women to outperform is not only seen in retail investors, however. Female hedge fund managers have consistently and soundly thumped their male colleagues, owing largely to the patience discussed above. As LouAnn Lofton of the Motley Fool reports, “…funds managed by women have, since inception, returned an average 9.06 percent, compared to just 5.82 percent averaged by a weighted index of other hedge funds. As if that outperformance weren’t impressive enough, the group also found that during the financial panic of 2008, these women-managed funds weren’t hurt nearly as severely as the rest of the hedge fund universe, with the funds dropping 9.61 percent compared to the 19.03 percent suffered by other funds.”
As the 2024 election unfolds, resist the urge to make dramatic changes to your portfolio. Remember, sometimes the best action is inaction. By staying the course and avoiding the pitfalls of action bias, you can protect and grow your wealth, regardless of the political landscape.
“Simplicity is the ultimate sophistication,” proclaimed an Apple Computer marketing brochure back in 1977. In the ensuing decades, Steve Jobs’ commitment to this ideal resulted in technology products that were as beautiful as they were easy use, and in Apple becoming one of the most valuable companies in the world.
The clutter we accumulate in our lives often prevents us from fully experiencing the adventure and freedom that life offers. At some point, our possessions can become chains, anchoring us and stifling our spirit of adventure. Think about how paring down to the essentials in these four areas could improve your Return on Life (ROL) and fuel your adventurous spirit.
1. Simplify your space.
Imagine your home as a base camp for your next adventure. Surrounding yourself with too much stuff can weigh you down and inhibit your readiness for new experiences. Surrounding yourself with too much stuff can also have serious effects on your mental and physical health, including stress, depression, lack of focus, and higher risks of household injuries. Cleaning can have the opposite effects, filling you with positive feelings as you open up more physical space for yourself. As you organize things you want to keep and let go of those you don’t, you might feel nostalgia and gratitude for people and experiences that have enriched your life. And giving away items you’ve outgrown will make you feel good about helping someone else as you also make room for the exciting things that will be coming next.I consider myself pretty simple and not materialistic, but every time I go to do a clean out, I realize just how much I like my stuff.It is one thing to decide to simplify, but it is much harder work to actually do it.Just remember that simplifying is not just about reducing; it’s about making space for what truly ignites your passion.
2. Simplify your schedule.
Your calendar should be a roadmap to adventure, not a to-do list that leaves no room for spontaneity. Despite your many personal and professional responsibilities, you probably have more control over your days than you realize. With a little forethought, it’s usually possible to make time for exercise, reading, or a quiet cup of coffee, especially if you incorporate some of these activities into your morning or bedtime routine. But if you really can’t find time for a run or a dinner date with your spouse for the ‘big rocks’ in your life, you might need to take a hard look at your whole schedule and reassess your priorities. Are you staying up too late and sleeping in longer than you should? Are you taking more meetings at work than you really need to? If your schedule is constantly packed and stuck in the fast lane, there will never be space to chase your own great adventure.Simplifying your schedule can open up opportunities to chase new experiences and explore uncharted territories, both literally and metaphorically.As you probably know by now, I think having this pursuit is a must.
3. Simplify your thinking.
The running dialogue in your head that’s constantly dredging up regrets about the past and spreading anxiety about the future is robbing you of the present. It can be like fog on your path, obscuring the beautiful vistas ahead.Incorporate mindfulness into your daily routine to keep yourself focused on what you can and will accomplish today. Try meditation, yoga, or deep breathing exercises to root your mind and body in the here and now. Keeping a gratitude journal can also help you appreciate all of the good things in your life instead of dwelling on negative thoughts.
4. Simplify your finances.
What, ultimately, is your money for? Truly, the only value of money is in its use.Think of your finances as a toolkit for your explorations.
Yes, we all have to pay the bills and provide the essentials for our families. But the way we use our money should also be tied to specific, actionable life goals and upcoming transitions. When we don’t earn, spend, save, and invest on purpose, our money tends to scatter across possessions we don’t really need, subscriptions we don’t really use, debt that we could have avoided, and short-term solutions to problems that will continue to linger in the long run. Vacations get skipped, old cars get older and more unreliable. Then, suddenly, your family has outgrown your home but you can’t afford to move, or your kids are looking at colleges you can’t pay for, or you and your spouse are both wishing you had the means to retire.
When you eliminate what’s not essential, you’ll have more resources to commit to the people, places, and activities that make you truly happy. You can allocate more resources to experiences that bring joy and excitement. Want to have an authentic conversation about these things that really matter?Schedule an appointment with us and let’s talk about how our Life-Centered Planning process can simplify complex financial issues and keep you and your money organized so you can pursue your own great adventure now.
If there’s a message to take from 2023 markets, it is this: Timeless wisdom best informs timely decisions.
Here’s how Morgan Housel describes the same in his new book, “Same as Ever.”
“The typical attempt to clear up an uncertain future is to gaze further and squint harder—to forecast with more precision, more data, and more intelligence. Far more effective is to do the opposite: Look backward, and be broad. Rather than attempting to figure out little ways the future might change, study the big things the past has never avoided.”
Following are a few timeless tenets that offer timely investment insights for the year ahead.
There’s Never a Good Time to Time the Market
Perhaps most obviously, last year demonstrated how randomly—and rapidly—markets can move. As The Wall Street Journal reported at year-end:
“Almost no one thought 2023 would be a blockbuster year for stocks. They could hardly have been more wrong.”
“What was supposed to go up went down, or listed sideways, and what was supposed to go down went up — and up and up. The S&P 500 climbed more than 20% and the Nasdaq 100 soared over 50%, the biggest annual gain since the go-go days of the dot-com boom. … ‘I’ve never seen the consensus as wrong as it was in 2023,’ said Andrew Pease, the chief investment strategist at Russell Investments.”
Many financial pundits offered elaborate explanations for the year’s fortunes, and why (in hindsight) their projections were so far off. While their reasons may be accurate, the implication is, were it not for this, that, or the other thing, their forecasts would have been correct.
The problem is, there’s almost always “this, that, or the other thing” going on in this big, busy world. Thus, it really should come as no surprise that routine surprises regularly randomize the market’s next moves.
We’ve known this for years—since at least 1973, when Burton Malkiel published the first edition of “A Random Walk Down Wall Street.” Even after 50 years, Malkiel’s message represents one of the most timeless truths explaining why we don’t try to time market trends.
Beware of Catchy Catchphrases
In 2023, just seven stocks within the S&P 500 Index explained almost two-thirds of the index’s total annual gains. Their striking performance scored them the catchy title, “Magnificent Seven.”
What should we expect for this star lineup in the coming year? Search today’s popular press, and you’ll find timely tips galore on whether to bulk up on more magnificence, or sell while the selling is good. Forecasts hinge on the usual suspects: Whether inflation rises or falls, a recession lands or recedes, technologies advance or retreat, and so on.
Taking a more timeless view, we would suggest being wary of celebrated stocks bearing trendy titles. Chasing after stellar returns with their own nicknames may work for a while. But eventually, one of those “surprises” tends to come along, turning once-hot stocks into cold plays.
Which brings us to our next timeless tenet.
Diversification Is Perennially Prudent
Viewing 2023 up close, there may be a temptation to chase after the market’s recent winning streak, bulking up on more of that which has been so pleasantly surprising of late.
Zooming out, our perspective remains unchanged: Maintain a globally diversified portfolio, tailored for your needs. Treat an allocation to the Magnificent Seven (and the next trend, and the one after that) as one of many “pistons” powering the market’s perennial growth. But pair it with effective diversification, to temper the inevitable upsets that await us in the year(s) ahead.
In this spirit, I wish you a well-diversified investment portfolio in 2024, along with abundant concentrations of health, happiness, and harmonious well-being for you and yours.
Scan the financial headlines these days, and you’ll see plenty of potential action items vying for your year-end attention. Some may be particular to 2023. Others are timeless traditions. If your wealth were a garden, which actions would actually deserve your attention? Here are our four favorite items worth tending to as 2024 approaches … plus a thoughtful reflection on how to make the most of the remaining year.
1.Feed Your Cash Reserves
With basic savings accounts currently offering 5%+ annual interest rates, your fallow cash is finally able to earn a nice little bit while it sits. Sweet! Two thoughts here:
Mind Where You’ve Stashed Your Cash: If your spending money is still sitting in low- or no-interest accounts, consider taking advantage of the attractive rates available in basic money market accounts, or similar savings vehicles such as short-term CDs, or U.S. Series I Saving Bonds (“I Bonds”). Your cash savings typically includes money you intend to spend within the next year or so, as well as your emergency, “rainy day” reserves. (Note: I Bonds require you to hold them for at least a year.)
Put Your Cash in Context: While current rates across many savings accounts are appealing, don’t let this distract you from your greater investment goals. Even at today’s higher rates, your cash reserves are eventually expected to lose their spending power in the face of inflation. Today’s rates don’t eliminate this issue … remember, inflation is also on the high side, so that 5% isn’t as amazing as it may seem. Once you’ve got your cash stashed in those high-interest savings accounts, we believe you’re better off allocating your remaining assets into your investment portfolio—and leaving the dollars there for pursuing your long game.
2.Prune Your Portfolio
While we don’t advocate using your investment reserves to chase money market rates, there are still plenty of other actions you can take to maintain a tidy portfolio mix. For this, it’s prudent to perform an annual review of how your proverbial garden is growing. Year-end is as good a milestone as any for this activity. For example, you can:
Rebalance: In 2023, relatively strong year-to-date stock returns may warrant rebalancing back to plan, especially if you can do so within your tax-sheltered accounts.
Relocate: With your annual earnings coming into focus, you may wish to shift some of your investments from taxable to tax-sheltered accounts, such as traditional or Roth IRAs, HSAs, and 529 College Savings Plans. For many of these, you have until next April 15, 2024 to make your 2023 contributions. But you don’t have to wait if the assets are available today, and it otherwise makes tax-wise sense.
Revise:As you rebalance, relocate, or add new holdings according to plan, you may also be able to take advantage of the latest science-based ETF solutions. We’re not necessarily suggesting major overhauls, especially where embedded taxable gains may negate the benefits of a new offering. But as you’re reallocating or adding new assets anyway, it’s worth noting there may be new, potentially improved resources available.
Redirect: Year-end can also be a great time to redirect excess wealth toward personal or charitable giving. Whether directly or through a Donor Advised Fund, you can donate highly appreciated investments out of your taxable accounts and into worthy causes. You stand to reduce current and future taxes, and your recipients get to put the assets to work right away. This can be a slam dunk strategy to avoid an embedded capital gain and get a tax deduction for the full value going to the charity of your choice.If you have appreciated assets, considering gifting these and holding on to your cash.
3.Train Those Taxes
Speaking of taxes, there are always plenty of ways to manage your current and lifetime tax burdens—especially as your financial numbers and various tax-related deadlines come into focus toward year-end. For example:
RMDs and QCDs: Retirees and IRA inheritors should continue making any obligatory Required Minimum Distributions (RMDs) out of their IRAs and similar tax-sheltered accounts. With the 2022 Secure Act 2.0, the penalty for missing an RMD will no longer exceed 25% of any underpayment, rather than the former 50%. But even 25% is a painful penalty if you miss the December 31 deadline. If you’re charitably inclined, you may prefer to make a year-end Qualified Charitable Distribution (QCD), to offset or potentially eliminate your RMD burden.
Harvesting Losses … and Gains: Depending on market conditions and your own portfolio, there may still be opportunities to perform some tax-loss harvesting in 2023, to offset current or future taxable gains from your account. As long as long-term capital gains rates remain in the relatively low range of 0%–20%, tax-gain harvesting might be of interest as well. Work with your tax-planning team to determine what makes sense for you.
Keeping an Eye on the 2025 Sunset: Nobody can predict what the future holds. But ifCongress does not act, a number of tax-friendly 2017 Tax Cuts and Jobs Act provisions are set to sunset on December 31, 2025. If they do, we might experience higher ordinary income and capital gains tax rates after that. Let’s be clear: A lot could change before then, so we’re not necessarily suggesting you shape all your plans around this one potential future. However, if it’s in your overall best interests to engage in various taxable transactions anyway, 2023 may be a relatively tax-friendly year in which to complete them. Examples include doing a Roth conversion, harvesting long-term capital gains, taking extra retirement plan withdrawals, exercising taxable stock options, gifting to loved ones, and more.
4.Weed Out Your To-Do List
I love this one…it is at the top of my improvement goals. Doing less instead of staying busy with more. This year, we’re intentionally keeping our list of year-end financial best practices on the short side. Not for lack of ideas, mind you; there are plenty more we could cover.
But consider these words of wisdom from Atomic Habits author James Clear:
“Instead of asking yourself, ‘What should I do first?’ Try asking, ‘What should I neglect first?’ Trim, edit, cull. Make space for better performance.”
Let’s combine Clear’s tip with sentiments from a Farnam Street piece, “How to Think Better.” Here, a Stanford University study has suggested that multitasking may not only make it harder for us to do our best thinking, it may impair our efforts.
“The best way to improve your ability to think is to spend large chunks of time thinking. … Good decision-makers understand a simple truth: you can’t make good decisions without good thinking, and good thinking requires time.”
In short, how do you really want to spend the rest of your year? Instead of trying to tackle everything at once, why not pick your favorite, most applicable best practice out of our short list of favorites? Take the time to think it through. Maybe save the rest for some other time.
Well, we made it to 2021 so how are you feeling? The start of a new year can breed hope for new possibilities. Even though 2020 was oppressive to most in so many ways, I do think we can still hold hope for the new year. I have never been one to focus on New Year’s resolutions as they always felt like a recipe for disappointment (I know that is not the case for everyone, though). What I am striving for this year is not new resolutions, but rather strengthening routines. Routines feel more in my control, and if 2020 taught anything, it is to control what we can control. One of these areas for me is to practice gratitude. I have begun by thinking of 3 things I am grateful for each night before I go to sleep. It is refreshing and encouraging to think on these things. When we talk later this year, feel free to check on my progress with this. This is just one small example, and I am sure that you have others that jump to your mind. Let me encourage you to pursue practices like this for the sake of your own mental health in 2021.
Speaking of control…
You likely have heard us say in the past that market performance is not an area that any of us have control. Because of this, it is wasted energy to focus and worry about market movements. You should spend that energy doing things you can control: spend less than what you make, avoid debt, build cash reserves, plan your generosity and plan your future – practical principals that have an outsized impact on your life.
Small, quiet acts
Whether the temptation is to abandon a free-falling market (like the one we encountered less than a year ago), or chase after winning streaks, an investor’s best move remains the same. Concentrated bets on hot hands generate erratic outcomes, which makes them far closer to being dicey gambles than sturdy investments. Trust instead in the durability of your carefully planned investment portfolio. Focus instead on small, quiet acts. That is what we are here for, for example, to:
– Remind you that your globally diversified portfolio already holds an appropriate allocation to Tesla stock (which may be a lot, a little, or none, depending on your financial goals.
– Guide you in rebalancing your portfolio if recent gains have overexposed it to market risks.
– Help you interpret the 5,600 pages of the newly passed Consolidated Appropriations Act, 2021, so you can manage your next financial moves accordingly.
– Assess potential ramifications of the Biden tax proposals and advise you on any additional defensive tax planning that may be warranted for you in the years ahead.
-Remain by your side as you encounter whatever other challenges and opportunities 2021 has in store for you and your family.
These are not loud acts that you will read about in the paper, but they are the stuff financial dreams are made of. 2021 will be interesting to say the least, but let’s hold onto the hope and possibility that a new year brings. Stay healthy, stay grateful and know that we are here to help.
Josh, Mike, Matt and Sandra
Most North Carolinian’s are working hard to take care of their families and help their neighbors in the current crisis. Nevertheless, criminals seek to exploit the Covid-19 pandemic to further their scams.
We received the notice below from the North Carolina Secretary of State warning residents to be wary, and we want to share it with you. If you or someone you care about comes across something questionable related to investing or charitable activities, please don’t hesitate to call. We can help you check it out. PLC Wealth is here to help you and answer any questions you have.
Take care, and thank you for your business with PLC Wealth.”
NC Secretary of State Offers Tips to Avoid COVID-19 Related Investment Scams
NC Secretary of State Elaine Marshall is cautioning investors that the ongoing Coronavirus pandemic will likely spark a surge of investment fraud.
“Sadly, scam artists will seek to exploit rising concerns about COVID-19 to draw people into investment traps,” warned Marshall. “Fraudsters often use the day’s headlines in their pitches, so expect to see them prey on the fear surrounding the unfolding Coronavirus pandemic and recent economic developments to promote sham investments.”
The North American Securities Administrators Association (NASAA), of which the NC Secretary of State’s Office is a member, is joining state regulators in offering tips to keep investors safe in these uncertain times.
Bad actors may develop schemes falsely purporting to raise capital for companies manufacturing surgical masks and gowns, producing ventilators, distributing small-molecule drugs and other preventative pharmaceuticals, or manufacturing vaccines and miracle cures.
Scammers also will seek to take advantage of concerns with the volatility in the securities markets to promote “safe” investments with “guaranteed returns” including investments tied to gold, silver and other commodities; oil and gas; and real estate. Investors also can expect to see schemes touting quickly earned guaranteed returns targeting seniors worried about economic disruptions and losses to their retirement portfolios.
“From guarantees of high returns without risk to promises of a miracle cures, if it sounds too good to be true, it probably is,” warned Secretary Marshall. “I urge North Carolinians to follow these tips to help protect your financial and physical health as you navigate these uncertain times.”
Investors are encouraged to call the NC Investor Hotline at (800) 688-4507 or email us at before signing over money in any investment opportunity. If you suspect an investment opportunity is fraudulent, you may report it at www.sosnc.gov. You can also find a wealth of investor education material at www.sosnc.gov/divisions/securities.
Schemes to Watch for:
Private placements and off-market securities. Scammers will take advantage of concerns with the regulated securities market to promote off-market private deals. These schemes pose a threat to retail investors because private securities transactions are not subject to review by federal or state regulators. Retail investors must continue to investigate before they invest in private offerings and independently verify the facts for themselves.
Gold, silver and other commodities. Scammers may also take advantage of the decline in the public securities markets by selling fraudulent investments in gold, silver and other commodities not tied to the stock market. These assets are often promoted as “safe” or “guaranteed” means of hedging against inflation and mitigating systematic risks. However, scammers may conceal hidden fees and mark-ups, and the illiquidity of the assets that may prevent retail investors from selling the assets for fair market value. There are no “can’t miss” opportunities.
Recovery schemes. Retail investors should be wary of buy-low sell-high recovery schemes. For example, scammers will begin promoting investments tied to oil and gas, encouraging investors to purchase working or direct interests now so they can recognize significant gains after the price of oil recovers. Scammers will also begin selling equity at a discount, promising the value of the investments will significantly increase when the markets strengthen. Never lose sight of the risks associated with any prediction of future performance and remember that market gains may not correlate with the profitability of their investments.
Get-rich-quick schemes. Scammers will capitalize on the increased unemployment rate with false promises of quick guaranteed returns that can be used to pay for rent, utilities or other living expenses.
Replacement and swap schemes. Investors should be wary of any unlicensed person encouraging them to liquidate their investments and use the proceeds to invest in more stable, more profitable products. Investors may pay considerable fees when liquidating investments, and the new products often fail to provide the promised stability or profitability. Advisors may need to be registered before promoting these transactions and legally required to disclose hidden fees, mark-ups and other costs.
Real estate schemes. Real estate investments may be appealing because the real estate market has been strong and low interest rates have increased demand. Scammers often promote these schemes as safe and secure, claiming real estate can be sold and the proceeds can be used to cover any losses. However, real estate investments present significant risks, and changes to the economy and the real estate market may negatively impact the performance of these products.
How to Protect Yourself:
The NC Secretary of State’s Securities Division offers this guidance to help investors avoid investment scams:
Ask before you invest. Investors in North Carolina should call the NC Investor Hotline at (800) 688-4507 or email us at to find out if the salesperson and the investment opportunity itself are properly registered. Investors also can check the SEC’s Investment Adviser Public Disclosure database and FINRA’s BrokerCheck. Avoid doing business with anyone who is not properly licensed. If you suspect fraud, please report it to us at www.sosnc.gov.
Don’t get hooked by a phishing scam. Phishing scams may be perpetrated by those claiming an association with the Centers for Disease Control and Prevention, the World Health Organization, or by individuals claiming to offer medical advice or services. Watch out for con artists offering “opportunities” in research and development. These scams may even be perpetrated by people impersonating government personnel, spoofing their email addresses and encouraging victims to click links or open malicious attachments. These emails may look real and sound good, but any unsolicited emails with attachments and web links may be directing you to dangerous websites and malicious attachments that can steal information from your computer, lock it up for ransom, or steal your identity. When in doubt, don’t click.
There are no miracle cures. Scientists and medical professionals have yet to discover a medical breakthrough or develop a vaccine or cure for COVID-19. Don’t fall for online pharmacies claiming to offer vaccines and don’t send money to anyone claiming they can prevent COVID-19, through a vaccine or other preventive medicine.
Avoid fraudulent charity schemes. White-collar criminals may pose as charities soliciting money for those affected by COVID-19. Fake charities will frequently use sound alike names that mimic established charities. Rather than clicking on the links or responding to the email addresses or phone numbers provided in a text, email or social media post, do an internet search to find the charity’s website and reach out to them directly. A link in an unsolicited email could send you to an impostor site. Give generously but wisely to make sure your help is going to those who need it.
Be wary of schemes tied to government assistance or economic relief.The federal government may send checks to the public as part of an economic stimulus effort. It will not, however, require the prepayment of fees, taxes on the income, the advance payment of a processing fee or any other type of charge. Anyone who demands prepayment will almost certainly steal your money. And don’t give out or verify any personal information. Government officials already have your information. No federal or state government agency will call you and ask for personal
This will be the quarter that we look back on and never forget. It was the time that a virus spread with a silent vengeance, and the world came to a screeching halt. You may be feeling quite disoriented, fearful or even anxious as you read this note since ‘normal’ for all of us has been shaken to its core due to Covid-19. You are likely hunkering down at home, which is what you should do, with little of your regular activities to keep you busy. If you are like me, it literally feels like the earth has stopped spinning on its axis. Up is down, and right is left. Trust me when I say that it is completely normal to feel this way in the context of what we are dealing with as a human species.
I do not come to you with answers or any conclusions that will change the world…there are people that are much smarter than me working on that now, and I have confidence that they will figure it out. But I can bring some encouragement and suggest some small actions that might, just maybe, help us feel like planet earth is starting to rotate once again.
What can you do?
The spread of Covid-19 has impacted the global economy with a speed and impact that is unlike anything seen in our lifetime. This does not mean that happiness and contentment are totally out of your control, however. Mindset is key…start by realizing that the sun still rises every morning like the picture at the top of the article. There is new hope with each new day. I am sure you have found, as have I, that there is now more time to watch movies, read a book, take a distance-appropriate walk to enjoy the spring weather or call someone (yes, actually call them rather than text) to see how they are doing.
If you are sheltering at home with loved ones, you have probably seen them more in the last two weeks than you have for months. We should all continue to do more of these things, and the more we do, the more connected we will stay. I am not a loquacious extrovert, but I have thoroughly enjoyed being around and talking with the ones I care most about. And the more connected we stay, the more human we will feel. This is where happiness and contentment hide, not in your investment portfolio or the latest round of news.
What are we doing?
Actions taken during times of fear in the markets will have implications for years to come. The question is whether they will be positive or negative. For the long-term investors, which are clients that we serve, volatility creates opportunity. We have taken advantage of this opportunity by tax loss harvesting, which allows us to realize the losses for tax savings, but then invest the proceeds right back in something else so the money is never out of the market. The tax savings for our clients this year will be significant. We have also looked to strategically rebalance portfolios. Because some of the fixed income assets have gains over the last year, we have sold those gains to go buy equity funds that are now at a discount. It rebalances the ship and holds to the strategy of selling high and buying low.
What is next?
The fact is, I don’t know. No one does, but that’s OK. We are still waiting on the details of the massive Stimulus bill that was signed into law on March 27th. There are too many details for me to summarize here. If you want a deep dive in to the details, you can find that here. I plan to write more on this soon, but if you have any questions about this, please do not hesitate to call our office. We are all working remotely, but the extensions still ring right to us. Know that we are here to help in this time of uncertainty. Your well-being is of greatest concern to us, and not just financially. Be safe, be smart, and be part of the global solution for everyone by staying home.
