Plan Forward Checkup
By Bob Barber, CWS®, CKA®
“Know well the condition of your flocks, and give attention to your herds, for riches do not last forever; and does a crown endure to all generations?”
During a Bear market, it is very important to update your Financial Plan to see how it is handling the stress. When planning is done during bull markets we always compensate for bear markets that are inevitable by planning with overall returns that are 30-40% lower than normal. It’s kind of like running an engine at a very high-stress level in a factory to see if it can handle the heat in the real elements, but nothing is like the real thing.
So far, every financial plan we have updated recently has not been affected in the long term by the bear market we are presently in, but I still believe it’s always a good idea for a checkup. The eMoney financial planning system we use updates all plans daily with new values so we can run a test in seconds. A 15-minute phone call is all it takes for a quick checkup to see if anything needs to be adjusted to your financial plan.
A client just a few weeks ago asked with all the inflation if there was any way that they could withdraw a little more from their portfolio to compensate. I ran the numbers, and the answer was yes. They were relieved and surprised to hear this with the bear market we are presently in, but we were prepared for them.
Set up your appointment now to:
> Plan Forward
> Update
> Compensate If Necessary
It’s always a good idea to check the engine after a drive in the desert or a flood for any damage!
The views expressed represent the opinion of Christian Financial Advisors®. The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While Christian Financial Advisors® believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Past performance is not indicative of future results. For any discussion of equity securities: Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. For any discussion of taxes: Christian Financial Advisors® does not provide tax advice and encourages you to seek guidance from a tax professional.