Coronavirus Portfolio Survival Kit

The current contagion has been keeping us warm inside another bear market. Staying in our separate quarantine bubbles, panic and fear could be smothering us every day. How do you survive and thrive amid the Coronavirus?

In this episode, Bob and I will reveal the three most vital action steps you need to be taking right now to handle the volatility in the market. We’re going to address the biggest financial concerns based on the volume of questions we are receiving from our listeners & clients.

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For our spotlight segment, we have our star Financial Advisor, Frankie Lagrotteria. Find out how she helped get a newly retired couple on the right path right before the prevailing market decline.

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

 

Financial Propaganda of the Week

Media has never been this insane for a long time. So we scour the daily financial news to find you the best and worst advice. Here are some of those we can call either good advice or terrible offenders of financial propaganda:

[04:18] – Some predict that the market will go lower than it was in March 2020. 

[06:11] – Investing is about growing assets and not listening to bond fund managers making predictions about the stock market.

[07:54] – Barron’s Why the Stock Market Hasn’t Hit Bottom and Could Fall Another 35%.

[09:23] – Fixed income and strategy are vital in your portfolio. You need the discipline to focus on your goals for your portfolio and not on what the media is trying to tell right now.

Three Steps to Survive and Thrive in a Bear Market

The truth about bear markets is it can be brutal when it hits. Here’s how you can thrive, not just survive, in the current market crash.

[13:46] – Always stay invested. No matter how intriguing it is to back out, never do so because it’s harder to get back in the game.

[15:39] – One of the big advantages of owning stocks over the long term is dividends. 

[17:24] – Rebalance your portfolio by having high-quality portfolio bonds, not bond funds.

[19:27] – Be diversified because we’ve learned that when you’ve had a bear market like this, whatever was doing well before the bear market isn’t necessarily the best place to be after the bear market.

Today’s Top Financial Concerns

We’re seeing a huge surge in questions from clients and listeners over the past couple weeks with regards to what they should be doing with their finances right now. Here are our top picks and tips!

[24:33] – Should you make changes to a traditional financial strategy? Should this virus become seasonal and reoccurring?

[26:11] – If you’re expecting tax refunds, what is a good strategy or time to add funds to investments versus savings?

[27:06] – If you’re in your mid-60s, have worked a lifetime for your savings, how do you still know if you’re going to be okay?

[28:47] – With the market down, is this the best time to take some of my money enrolled in a Roth IRA?

The Mailbag

Major financial decisions are concerned during a crisis. Because of that, we get questions about investments coming in. We’ll be happy to answer them for you, simply send us an email at questions@bebullish.com.

[36:41] – Question #1: “When the 2008 downturn hit, my previous advisor said, ‘Don’t worry, it’s only a hiccup.’ Well, that hiccup took 40% of my investment. Now, this seems worse. What say you?”

[38:50] – Question #2: “Is there a difference in the end between spending dividends and selling shares, whether in a bull or a bear market?”

Spotlight Segment

Since we are all in quarantine, we’ve been going through portfolios through Zoom calls and a secured email. Today, our Financial Advisor, Frankie Lagrotteria breaks down for us how she got a couple out of a black hole before a market decline.

[48:04] – The couple retired in January. They had a lot of cash on hand and their money was heavily invested in the large-cap stocks.

[49:44] – The big thing we did for them was to get them into individual bonds. We also diversified their portfolio because they need some income, and they’re not getting it from bonds, cash flow or cash that they had sitting in the bank. They need it from their equities. 

[50:59] – The takeaway from this is it is so much easier to make decisions about a portfolio when it’s based on your goals and a strategy as opposed to our ability to see the future. Also, always take the emotions out of it.