How to Navigate the Market Crash
Channel: Payne Capital
Date: 2020-03-24

Financial markets have soured quickly due to the increasing confirmed cases of Coronavirus worldwide. Now that we are currently hugging another bear market and reading headlines that are getting crazier by the minute, what should you be focusing on when it comes to your finances?
 
In today’s episode, Bob and I discuss how to respond to the market amid the Coronavirus meltdown. Find out the common financial mistakes you should be dodging at all costs. As always, it’s time to spot the ill-advised ones on today’s financial propaganda.
 
For our spotlight segment, we have my brother & Bob’s son Chris Payne, also a financial advisor at Payne Capital Management. Hear how he was able to talk a lady out of bond funds and helped her get on the path to financial freedom.
 
We’ve got a great show ahead, so don’t miss out. Tune in to the No Payne, No Gain podcast now!

Do’s and Don’ts of a Market Crash
Fear and panic are two of the emotions brought to us by this pandemic. What will be the impact on our economy and how should you respond to it?
[03:36] – If you’re thinking about getting out of the market right now, it’s not the right time to do it. 
[04:39] – You never get good pricing from good news, you only get it with bad news.
[05:01] – You should be proactive and not reactive during this time.
[05:17] – Bob assures that having a portfolio right now is beneficial because even if the market is down, your portfolio is making money every day.
[06:13] – More than ever now is the perfect time to re-allocate and get a better plan in place.
[06:24] – Take advantage of your tax losses while the market is down. You can do a tax swap.

Be Proactive, Not Reactive
In these tumultuous times, we are tempted to make irrational financial decisions that we would surely regret in the long run. It’s time to avoid making those reactionary types of investments.
[12:31] – We blindly consider bonds to be a safe investment when it’s not.
[13:14] – Bob says to always be careful about who you loan your money to. Lend it to the highest quality institution instead so you’re sure to get your money back.
[16:21] – The only way to have a true hedge is to own actual bonds that have an actual maturity date, and an actual fixed rate of return. If not, get rid of that investment.  
[17:14] – Never lock everything into an annuity because it’s not a good strategy.

Financial Propaganda of the Week
We’re here to help you make sound decisions and protect yourself from the biggest offenders, those who offer obscene financial guidance especially in this time of adversity.
[23:19] – Most headlines shout out about the financial world being a mess right now.
[24:32] – In the short run, pessimism reigns. In the long run, optimism gets all the returns.
[25:03] – The market will recover most likely before the news is going to get better.
[27:55] – To become a smart investor, you should not see panic as something you should participate in, but rather see it as something to take advantage of.
[29:00] – The only way to survive a black swan event is to have a plan that is based on your goals and needs. 

The Mailbag
The current situation has been raising a lot of questions and we would be happy to answer them for you, simply send us an email at questions@bebullish.com. 
[33:31] - Question #1: “How does one get better at risk tolerance and mitigation? I'm tempted to go all cash and just sit things out for the foreseeable future because I don't have the tolerance to stomach these wild swings.”
[36:24] - Question #2: “I have a substantial amount of cash that I've been keeping in the bank for a while thinking that I might try to buy an investment property if the right one came along. But now I'm thinking I should use it to buy some stocks that are pretty cheap right now. What do you think?”

Spotlight Segment
Our special guest for this week is Chris Payne. He met up with a lady from New York and totally talked her out of her misconceptions on bond funds.
[44:07] – She’s in her 60’s getting close to retirement and already 80% in the market which is way too much risk. A lot of her investments are using leverage.
[45:42] – 20% of her money is in bond funds, which she thought was safe. 
[47:32] – Chris de-risks her portfolio by getting rid of all the equities at risk and spread some of it across different asset classes.

“The opposite of crisis is opportunity. And there's an opportunity to increase your long-term returns when you have these illogical, irrational dislocations in the market.” —Bob Payne

To download 5 Ways to Maximize Your Retirement Accounts and Save on Taxes in 2020 and the Highlights from the new SECURE Act, text BULLISH to 555888.
If you have saved over $500,000 for retirement and need a plan based on your retirement goals, Bob and Ryan will create a 360 Financial Portal just for you! Text or call 844-752-6692 to check out the 360 Financial Portal with no strings attached!

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