The War Chest

The War Chest

March 20, 2020

We know you are likely half-inebriated with all the coronavirus news—it has shoved aside most of our priorities and taken center stage. And make no mistake: it is nothing to dismiss. Governments around the world are taking enormous steps to keep citizens healthy, support businesses, and pass legislation to stimulate their economies.

Despite these steps, stock markets have fallen considerably. Clients are calling (if we haven’t beaten them to it!) to ask questions. Some are worried about their money, some are excited to buy while stocks are down, and some are unsure how to react. For those who are retired or close to it, a few voiced concerns about whether it will affect their income in retirement.

Fortunately, we focus on financial planning while designing your investment portfolios. The financial plan is built to weather times like these. They include what I like to call “The War Chest”.

What is The War Chest? Imagine the large, wooden treasure chest a king might keep in his tower during wartime. Inside were gold, jewels, and coins that funded the kingdom’s protection! The War Chest is the emergency funds of a kingdom—in this case, your kingdom.

For those who draw income from their accounts, it is money set aside for when times are bad. Part of your portfolio is conservative, stable, and easily accessible. It keeps us from selling other investments while they are down. Some investments we use hardly fluctuate or continue to grow, even during times like these. We give up some growth in exchange for stability, but it pays off now. It keeps families from changing their lifestyle (any more than they already are!).

Remember: you will not need your life’s savings today. You will gradually need it, and we will carefully, thoughtfully generate income from optimal sources. Never hesitate to give us a call or shoot us an email—we are here for you. Having a year’s worth of cash available does not change the fact that there is a lot of uncertainty in the air. People will make mistakes in the emotion of the moment. With a plan in place, however, we can step back and recognize that this too shall pass.

In the meantime, we will ascend the stairs of the tower and bring you The War Chest. I heard one of the guards say there might be some spare toilet paper in there.


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