Changing Directions... Is it time?

Hello,

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You may have heard about Tom Brady in the news recently. He retired and then decided to come back and play another season in the NFL. Apparently, his wife is not pleased with his decision to return to football.

Michael Jordan did a similar thing when he tried to play professional baseball after his NBA career ended, then he went back to the NBA. Sometimes it’s hard to know when to go in a different direction.

Earlier this year I read Atomic Habits which is a book all about how to stop or change directions and develop better or different practices. The author, James Clear, stated that instead of trying to stop a behavior or habit cold turkey you should replace it with something else that has a positive context for you.

I remember when our now soon to be five year old, Amelia, started getting teeth and we sought advice from the pediatrician about how to take her pacifier away. We were concerned that if she continued with the pacifier, it could cause her teeth to be misaligned. The pediatrician suggested we create a plan then carry it through to transition her off the pacifier. Sometimes the first step is getting a plan of action. Amelia is pictured below. Ready for Halloween.

When it comes to changing directions on how we’ve been invested it can be difficult to make a change. Sure, the catalyst for a lot of people transitioning their portfolio this year has been the continual downturn in the markets. With the NASDAQ down over thirty percent this year and the S&P 500 down over twenty percent many people are questioning if changes are needed.

Sometimes if we’re hemorrhaging, stopping the bleed is the number one priority. I’ve found that normally people who are in a position where they are uncertain of what to do normally don't have a clearly outlined plan of action.

Getting a written plan is a priority for how to respond to ups and down. And knowing how to create income in retirement is key to sustained peace of mind. Ansley our newborn is pictured below modeling new clothes.

Having our income money outside of the market is key to enduring major market downturns. If we have our income or expense money for a few years outside of the market it may bring peace of mind.

If our income and growth funds are subject to market gyrations the only remedy most people have for this is to just not look at their accounts. But when is burying our head in the sand like an ostrich a good thing?

Jamie Dimon, who is the CEO of Chase Bank was interviewed recently. The article said, “That while the Fed ‘waited too long and did too little’ as inflation jumped to four-decade highs, the central bank is ‘clearly catching up.’”

“'And, you know, from here, let’s all wish him [Fed Chair Jerome Powell] success and keep our fingers crossed that they [Federal Reserve] managed to slow down the economy enough so that whatever it is, is mild — and it is possible,’ he added.”

Dimon added, “It can go from very mild to quite hard and a lot will be reliant on what happens with this war [in Ukraine]. So, I think to guess is hard, be prepared.”

Obviously, there is a lot going on in the world and events are happening at breakneck speed it feels like. With proactive steps you can take action to mitigate getting caught in the crosswinds of uncertainty. You may be able to limit your downside exposure.

If you read this and you're feeling uneasy, let’s plan a time to speak. Reply to this email or call our office at 864.641.7955 to schedule a time to speak with me.

Until next week,

David C. Treece,

Financial Advisor

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