From Maple Street to Main Street to Wall Street
Greetings from Scottsdale,
2020 has been an unprecedented year with what we have endured. We’ve seen massive disruptions in most aspects of our lives running the gamut from Maple Street to Main Street to Wall Street in our home life, our businesses, and our investments. Normally, the transition from spring into summer is my favorite time of year. My kids are finishing school and summer offers a welcomed break from our typically rigorous schedules. Since 2014, I have focused my travel during the summer months to meet in person with you to review your portfolio, share how your investments have been managed, and discuss the outlook going forward. I have always enjoyed this face-to-face time with you to discover your relationship with your investments to provide the best planning help I can.
Even though the markets have somewhat recovered since March, much of our world remains disrupted. Some are sheltering in place, keeping distance from friends, colleagues, and loved ones. Some of us are working and staying at home. Vacation plans have been cancelled. Commutes are eliminated. Social events are delayed. The end of the school year for my kids was marked by a drive-thru graduation ceremony for my son with curbside take-out from his favorite restaurant. With travel restrictions and social distancing, my annual visit is cancelled and hopefully will happen later this year.
From here the question is how much of these changes will be permanent and how much will this affect your financial future. It’s important to balance the emotional side of where you are and where you want to be with a rational understanding of the where money can be made going forward. As a Registered Investment Advisor, I am ultimately responsible for the portfolios that are designed by Heintz Wealth Management and invested in your accounts. I also am responsible for understanding your unique circumstances and providing you the best advice to help you achieve your financial goals. Our virtual meetings have offered me understanding about how quarantine has impacted your lives and what new opportunities you’re discovering in your work or personal lives. One common thread I’ve witnessed is how nearly all of you have maintained within your long-term targets. Through our relationship and your commitment, I believe we’ve done the best we can by “not touching your face” or selling your portfolios to cash when the emotions were high. Many of you have reported a decrease in spending which offers opportunities to save in taxes by not withdrawing as much from retirement accounts. The CARES Act that passed late March contained a provision that allows for retirees to waive their required minimum distribution this year. We should discuss if this applies to you. This is one example of many I’m hearing about how the disruption is leading to opportunities from a planning standpoint.
Markets are constantly adjusting to take into consideration future events. Over the long term, I believe the environment with the pending economic recovery will create opportunities for companies to leverage this disruption. The next Amazon and Microsoft will be created out of how the world does business with each other now. Until then, I am cautiously optimistic the US Federal Reserve, as well as governments globally are doing enough to keep our economy sustained. As investors in bonds and stocks through mutual funds, ETF’s and other instruments, the landscape is changing now more than ever. Every time is unique but having seen the financial impact to investors after 9/11 as well as the great recession, I believe there were lessons learned that prepared us for what just happened as well as what to do from here. I am grateful to work together with you through these uncertain times.
All the best,
