Quarantine Financial Cleaning
Channel: Payne Capital
Date: 2020-04-21

We’re in an extremely volatile time, but the world doesn’t end very often, last time we checked. Just because you are in quarantine doesn’t mean you can’t take action and make some smart decisions about your money that will have a long lasting positive impact. There is no better time than now, to start preparing for when things get better. So time to start cleaning up your financial picture.

Today, Bob and I are going to guide you on how to position your portfolio for the inevitable economic rebound. We’re also going to break down how to put your financial life in order.

For our spotlight segment, we have our colleague, Certified Financial Planner™, Courtney Dominguez. Find out what being diversified really means as she shares how she increased the yearly income of a couple that was taking in too much risk.

We’ve got a great show here, so tune in to the No Payne, No Gain podcast now!

Financial Propaganda of the Week

A lot has been going on this week. The market made a huge rally from the bottom. The news is coming in worse than ever. It’s crazy out there! Here are the things you need to know about:

[04:01] – Media is a danger to your financial health. The news is a lagging indicator, not a leading indicator.
[06:53] – When uncertainty is the greatest, that’s the best time to buy. The market will accelerate even if the news is bad. 
[07:14] – If you’re going to rely on the news to make your financial decisions, you’re going to be behind.
[09:01] - Cash yields zero returns. Zero net of 2% inflation means that you’re getting negative returns.

Preparing for the Economic Rebound

We’re basically in a recession at this point. Forgive yourself for not seeing it coming and focus on looking forward. Let’s think about what would be the likeliest outcomes that are going to happen from here.

[13:37] – When things are down, that’s the best time to make some proactive decisions.
[14:11] – Diversification works.
[15:11] – Bond funds are not safe.
[15:52] – Don’t give up on stocks.
[17:18] – The pandemic is temporary. Your goals aren’t.

Decluttering Your Financial Life

Since you’re trapped in your house and have a lot of time, you’ve probably been organizing and cleaning out your closets. Well, you should also do the same thing for your financial portfolio. Let’s go through some of the principles used in house cleaning and apply them to your financial life.

[22:15] – Most of us know very little about our own financial assets. Now's a good time to start tallying them up.
[25:33] – Take a look at your budget line. There’s probably a lot of things that you don’t need to spend money on now. 
[26:47] – Interest rates are low right now. Maybe it’s time to refinance your mortgage.

The Mailbag

Got any questions about the economy or the market? We get a lot of investment-related questions coming in. We’ll be happy to answer them for you, simply send us an email at questions@bebullish.com.
 
[32:02] - Question #1: “Would you recommend selling investment-grade bonds and going into cash? Is this what you’re currently doing? I don’t need the cash for business or personal needs.”
[34:16] - Question #2: “Is now a good time to build up cash instead of buying into this volatile market?”
 
Spotlight Segment

Today, we have our Certified Financial Planner™, Courtney Dominguez. She tells us how she was able to increase the income for a couple by over $100,000 a year just by getting more conservative and truly diversified.
 
[41:47] – A couple in their early 60s who’ve been doing their own investments came to us wanting experts to take a look at their portfolio and see if they’re set up with enough funds and assets to retire on.
[42:21] – The couple thought they were very diversified, but all of their different Vanguard funds owned the same underlying investments. Half of their funds actually have the same top holding.
[43:27] – When it comes to retirement, you want to look smart. You need to make sure there’s certainty built in especially at times like this when we’re facing the Coronavirus. 
[46:04] – The couple had over 60% of their money in the stock market and when you’re that close to retirement, that’s a lot of money to have at risk.

“You need to have your big portfolio bonds here. Sitting money in cash and earning nothing right now is not a great long-term game plan.” —Ryan Payne

To download 5 Ways to Save on Taxes, 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.

Do you need a game plan for these volatile times? We’ll make sure you’re making the right decisions for your retirement plan. Schedule a call with one of us at  https://paynecm.com/game-plan-call/

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