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The Resilient Investor: Beyond the Ticker Symbol · Money In Motion with Klaas Financial

• 0:04
  Speaker 1: This is Money in Motion with Class Financial, a fun
• 0:08
  Speaker 1: and informative show designed to help you get answers to
• 0:11
  Speaker 1: all your retirement questions in one place.
• 0:14
  Speaker 2: And our phone lines are what to you right now
• 0:16
  Speaker 2: If you have questions for our retirement clients, professionals from
• 0:19
  Speaker 2: Bloss Financial and love to have you join us this morning.
• 0:21
  Speaker 2: Tell for number to get on the air. Six so
• 0:23
  Speaker 2: late three two one thirteen ten. That's six so eight
• 0:27
  Speaker 2: three two one thirteen ten. Joined this morning by c
• 0:30
  Speaker 2: J Closs and Eric Schwartz.
• 0:32
  Speaker 3: CJ.
• 0:33
  Speaker 4: How you doing this morning? I'm doing great, Sean, how
• 0:35
  Speaker 4: are you doing really well? Great to talk with you.
• 0:37
  Speaker 4: Eric is staying warm.
• 0:40
  Speaker 5: I'm staying warm, Shawn, and I just heard that we're
• 0:42
  Speaker 5: going to warm up this weekend, so that sounds good.
• 0:44
  Speaker 6: The twenties, we're going to be in the twenties by uh.
• 0:47
  Speaker 3: We'll take it.
• 0:47
  Speaker 2: Yeah, we sure will. And we've got a great conversation
• 0:51
  Speaker 2: ahead this morning. Be talking about being a resilient investor,
• 0:55
  Speaker 2: kind of beyond the TIC ticker symbol. We'll get the
• 0:58
  Speaker 2: details on that topic. And just a home A couple
• 1:00
  Speaker 2: of things keep in mind as we talk with Cjan Eric.
• 1:02
  Speaker 2: Of course, the phone lines They are always open to
• 1:05
  Speaker 2: you and your question at six oh eight three two
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  Speaker 2: one thirteen ten. That's six eight three two one thirteen ten. Love.
• 1:12
  Speaker 2: Do you have you joined us this morning on the
• 1:14
  Speaker 2: program if you've got a retirement related question. You can,
• 1:16
  Speaker 2: of course also learn more about Class Financial on their
• 1:19
  Speaker 2: website colossfinancial dot com.
• 1:21
  Speaker 6: That's coss klaas.
• 1:23
  Speaker 2: Financial dot com and their telephone number for the office
• 1:26
  Speaker 2: right here in Madison six.
• 1:27
  Speaker 6: So eight four four two five six three seven.
• 1:29
  Speaker 2: Don't forget no charge for that initial get to know
• 1:32
  Speaker 2: you appoyment at Loss Financial. It will be complimentary to
• 1:34
  Speaker 2: you again their number six oh eight four four two
• 1:37
  Speaker 2: five six three seven. We're going to be talking this
• 1:39
  Speaker 2: morning again about the resilience when it comes to investing
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  Speaker 2: and kind of keeping a level head through volatility and
• 1:45
  Speaker 2: other things in the market. But before we get rolling
• 1:47
  Speaker 2: on this week's conversation, let's actually look back at last
• 1:50
  Speaker 2: week's show. One of the great features of the program,
• 1:51
  Speaker 2: it's the Class Quiz Question the week, each and every
• 1:53
  Speaker 2: week a chance to win a fantastic prize from our
• 1:56
  Speaker 2: friends at Loss Financial. This week give a chance to
• 1:58
  Speaker 2: win a twenty five dollars gift card with the Class
• 2:01
  Speaker 2: Quiz question a week. Will Advice pay close attention to
• 2:03
  Speaker 2: the program because just about every show, the question answer
• 2:06
  Speaker 2: comes up during the program, and Eric, let's actually roll
• 2:09
  Speaker 2: back to last week's show and get the question and
• 2:11
  Speaker 2: answer there as well.
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  Speaker 5: Absolutely, So, last week we talked about health insurance for retirees,
• 2:18
  Speaker 5: so our question was we talked about the alphabet soup
• 2:21
  Speaker 5: of Medicare today, which part of Medicare is also known
• 2:25
  Speaker 5: as Medicare advantage, the all in one private insurance alternative
• 2:29
  Speaker 5: to original Medicare. So another name for that is Medicare
• 2:33
  Speaker 5: Parts C.
• 2:35
  Speaker 2: And that fantastic conversation we had last week, I know
• 2:39
  Speaker 2: that's one of those areas there's always a lot of
• 2:41
  Speaker 2: questions about if you ever want to listen back to
• 2:43
  Speaker 2: that or this previous shows podcasts as well, they are
• 2:46
  Speaker 2: all available to you at Classfinancial dot com. That's Closs
• 2:49
  Speaker 2: k l Aasfinancial dot com. So this week we're going
• 2:54
  Speaker 2: to be talking about resilience when it comes to investing
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  Speaker 2: and how folks can really keep a level head through
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  Speaker 2: volatile in the markets and make sure they don't make
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  Speaker 2: a mistake that could actually harm your long term financial plan.
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  Speaker 2: And CJ let's kind of lay this out. What should
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  Speaker 2: what should be known when it comes to being a
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  Speaker 2: resilient investor.
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  Speaker 4: Yeah, you know, shown this is an important topic, especially
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  Speaker 4: with where markets stand today.
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  Speaker 3: Some of our listeners will know this and others will not.
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  Speaker 4: Markets are what a lot of people would call expensive
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  Speaker 4: these days.
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  Speaker 3: Or high or at all time highs would be another
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  Speaker 3: way to think about that.
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  Speaker 4: And in many ways it's great because our four one
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  Speaker 4: ks account accounts are up, but in other ways that
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  Speaker 4: can create fear and uncertainty about what the future might bring.
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  Speaker 4: So this is where this concept of resilience comes in.
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  Speaker 4: We're not talking about ignoring fear or pretending that volatility
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  Speaker 4: doesn't exist. A resilient investor understands that discomfort is part
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  Speaker 4: of the process, but they don't let that discomfort dictate
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  Speaker 4: future decisions. So resilience comes from clarity. Clarity around why
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  Speaker 4: you're investing in the first place, and how long the
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  Speaker 4: money needs to work for you, and what the portfolio
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  Speaker 4: is designed to actually handle. When those things are clear,
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  Speaker 4: market swings become expected events instead of emergencies. Too often
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  Speaker 4: investors believe resilience means reacting quickly. In reality, resilience usually
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  Speaker 4: means doing less, not more, because the plan accounted for
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  Speaker 4: the uncertainty already. We often hear this quote, or we
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  Speaker 4: use this term inside of our office, which is market
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  Speaker 4: volatility is a feature of investing, not a bug. Let
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  Speaker 4: me repeat that, market volatility is a feature of investing,
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  Speaker 4: not a bug. So often people think my job is
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  Speaker 4: to outsmart the market and to limit or remove volatility
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  Speaker 4: by trading in and out, and we go, no, no, no, no, no,
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  Speaker 4: that's a feature. That's a future you're not You're not
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  Speaker 4: going to remove market volatility. If you're going to age
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  Speaker 4: of the market, you're going to have to deal with
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  Speaker 4: the volatility. So listen, everybody. Resilience isn't just emotional, it's
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  Speaker 4: also structural. Your portfolio should be built to a stand
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  Speaker 4: stress before it happens. That includes diversification, appropriate risk exposure,
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  Speaker 4: and access to liquidity so you're not forced to sell
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  Speaker 4: at the wrong time. We'll talk more about this as
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  Speaker 4: we go throughout the show, but listen, if you have
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  Speaker 4: a six month emergency reserve, you're paying off your debts,
• 5:28
  Speaker 4: you've got fully funded sinking funds for things like vehicles. Well,
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  Speaker 4: when markt volatility happens on your four oh and k
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  Speaker 4: I mean, it's kind of annoying. You don't like to
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  Speaker 4: see your balance go down, but it's not going to
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  Speaker 4: cause you to panic. What would cause you to panic
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  Speaker 4: is if the only money that you have is in
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  Speaker 4: the market right well suddenly now that mark of volatility
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  Speaker 4: creates creates a lot of uncertainty in your life and
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  Speaker 4: causes people to make bad decisions at the wrong time.
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  Speaker 3: So listen.
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  Speaker 4: When all these pieces are in place, investors don't need
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  Speaker 4: to rely on willpower during volatility.
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  Speaker 3: The structure does the heavy lifting for you.
• 6:06
  Speaker 2: Really great insight this morning as we talk with CJ.
• 6:08
  Speaker 2: Closs and Eric Schwartz, our retirement planning professionals from Class Financial.
• 6:11
  Speaker 2: Great opportunity to get on the air. We'd love to
• 6:13
  Speaker 2: have you join us this morning. We've had some fantastic
• 6:15
  Speaker 2: questions the past few weeks. Love to keep that trend
• 6:17
  Speaker 2: growing and love to hear from you. Six oh eight
• 6:19
  Speaker 2: three two one thirteen ten. That's six soh eight three
• 6:22
  Speaker 2: two one thirteen ten.
• 6:23
  Speaker 6: Don't forget.
• 6:23
  Speaker 2: You can learn more about Class Financial on their website
• 6:26
  Speaker 2: Coss Financial dot com. That's Coss Klaas financial dot com.
• 6:30
  Speaker 2: While you're there, you can learn more about loss Financial.
• 6:32
  Speaker 2: You can also schedule a complementary conversation right from the
• 6:35
  Speaker 2: website coss financial dot com. They're telephone number six so
• 6:38
  Speaker 2: eight four four two five six three seven. No charge
• 6:41
  Speaker 2: for that initial get to your appoyment at loss Financially,
• 6:44
  Speaker 2: it will be complementary to you again their number six
• 6:46
  Speaker 2: oh eight four four two five six three seven. So Eric,
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  Speaker 2: I would imagine a lot of investor stress comes from
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  Speaker 2: reacting to things that seem quite and feel very urgent.
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  Speaker 2: How should people think about navigating that urgency?
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  Speaker 5: Absolutely, investors are constantly exposed to headlines about interest rates, inflation,
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  Speaker 5: elections too, political events, earning surprises during earning seasons. These
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  Speaker 5: things absolutely affect the markets, but they're not really things
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  Speaker 5: that individual investors can control. Okay, so the dangers that
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  Speaker 5: reacting to these forces creates the illusion that we're taking control,
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  Speaker 5: we're doing something. It feels like you're being proactive, when
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  Speaker 5: in reality, you're often just responding emotionally to new information.
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  Speaker 5: And markets are really good at encouraging short term thinking.
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  Speaker 5: They reward reaction just enough to keep people engaged, but
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  Speaker 5: over time that behavior tends to erode returns and it
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  Speaker 5: creates a lot more stress during times of market volatility.
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  Speaker 5: Resilient investors accept uncertainty as permanent. Okay, CJ mentioned earlier.
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  Speaker 5: It is a feature, not a bug. They don't wait
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  Speaker 5: for clarity before acting. Instead, they build strategies that can
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  Speaker 5: function without it. Long term financial plan built on the
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  Speaker 5: expectation that there will be ups and downs in the market,
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  Speaker 5: so we don't have to panic when they happen.
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  Speaker 6: Really, as we talk about this stuff.
• 8:09
  Speaker 2: Too, you know, we think about the ups and kind
• 8:12
  Speaker 2: of what's normal, the ups and downs of the market,
• 8:14
  Speaker 2: and really having understanding and putting that stuff into into
• 8:17
  Speaker 2: focus when you're when you're doing these types of things.
• 8:19
  Speaker 2: It's a great thing too. Oftentimes a great assistant to
• 8:22
  Speaker 2: helping this stuff is having the right people in place.
• 8:24
  Speaker 2: A great opportunity to get to know the right people
• 8:26
  Speaker 2: are your friends at Class Financial. I gotta just speak up.
• 8:28
  Speaker 2: One game a call this morning six oh eight four
• 8:30
  Speaker 2: four two five six three seven, No charge for that
• 8:32
  Speaker 2: nation you get to know you appointment deck Class Financial.
• 8:34
  Speaker 2: It will be complementary to you again their number six
• 8:37
  Speaker 2: oh eight four four two five six three seven. The
• 8:39
  Speaker 2: website Class financial dot com. That's Claus k l a
• 8:43
  Speaker 2: A S Financial dot com and the phone lines are
• 8:45
  Speaker 2: open for you right now. If you've got a question
• 8:47
  Speaker 2: for CJ and Eric love, do you have you join
• 8:48
  Speaker 2: us six oh eight three two one thirteen ten. That's
• 8:51
  Speaker 2: six oh eight three two one thirteen ten. More of
• 8:53
  Speaker 2: Money in Motion with Class Financial continues right here on
• 8:56
  Speaker 2: thirteen ten doll wiu ib A.
• 9:00
  Speaker 1: This is Money in Motion with Class Financial, a fun
• 9:04
  Speaker 1: and informative show designed to help you get answers to
• 9:07
  Speaker 1: all your retirement questions in one place.
• 9:10
  Speaker 2: Starting with talking with our retirement planning professionals from Class Financial,
• 9:13
  Speaker 2: CJ Closs and Eric Schwartz. Don't gave and get to
• 9:15
  Speaker 2: know CJ, Eric and the whole team at Loss Financial
• 9:18
  Speaker 2: on the website cossfinancial dot com that's coss k l
• 9:21
  Speaker 2: a as financial dot com. Also learn about the separate
• 9:24
  Speaker 2: divisions at Coss Financial. Other are really really cool stuff there.
• 9:28
  Speaker 2: When it comes to upcoming events and great opportunities for you, again,
• 9:32
  Speaker 2: just head on over to cossfinancial dot com. That's coss
• 9:34
  Speaker 2: k l a as financial dot com. You can also
• 9:37
  Speaker 2: schedule a complementary conversation right from the website, or you
• 9:40
  Speaker 2: can pick up phone give a call right at the
• 9:41
  Speaker 2: office here in Madison six oh eight four four two, five,
• 9:44
  Speaker 2: six three seven. Don't forget that initial get to know
• 9:46
  Speaker 2: your appointments at COSS Financial. It's not going to cost
• 9:48
  Speaker 2: you a thing again their number six oh eight four
• 9:51
  Speaker 2: four two five, six three seven. And Eric, just before
• 9:54
  Speaker 2: we went to break there, he touched on some of
• 9:55
  Speaker 2: the risks that investors can't control. Let's kind of dig
• 9:58
  Speaker 2: into those a bit and talk about some of those
• 10:01
  Speaker 2: those things that are simply out of our I know
• 10:04
  Speaker 2: it's hard to hard to accept, but there are some
• 10:06
  Speaker 2: things that are just outside of our control, aren't there.
• 10:09
  Speaker 5: Yeah, definitely, And I think for for folks that are
• 10:14
  Speaker 5: are kind of sitting here listening to us, going yeah,
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  Speaker 5: this all sounds great, but you know, it's also feels
• 10:19
  Speaker 5: a lot different.
• 10:20
  Speaker 3: When you're when you're in the moment.
• 10:21
  Speaker 5: But the thing to remember is the most controllable risk
• 10:25
  Speaker 5: is is your behaviors. So not the market's behavior, but
• 10:28
  Speaker 5: you as the investor. So decisions that are made during
• 10:32
  Speaker 5: periods of fear or even excitement on the on the
• 10:34
  Speaker 5: other end of the spectrum, they often have a bigger
• 10:36
  Speaker 5: impact on long term outcomes than the market movement itself.
• 10:40
  Speaker 3: So if you're.
• 10:41
  Speaker 5: Staying invested, you're rebalancing your portfolio thoughtfully, and you're avoiding
• 10:45
  Speaker 5: impulsive changes. These are really really powerful advantages, and like
• 10:51
  Speaker 5: I said, the decisions you make during these times will
• 10:54
  Speaker 5: have long term impacts on the portfolio and on your
• 10:58
  Speaker 5: your financial security. Time horizon is a big factor when
• 11:04
  Speaker 5: it comes to you know, controlling your behavior around these things.
• 11:08
  Speaker 5: Money needed in the near term shouldn't be exposed to
• 11:10
  Speaker 5: the same risk as money meant for long term growth.
• 11:14
  Speaker 5: When investors kind of blur that line between well, this
• 11:17
  Speaker 5: is kind of money that I might need somewhat soon,
• 11:19
  Speaker 5: but hey, the market's going up and everybody else is
• 11:22
  Speaker 5: making money, I want to throw some in there. When
• 11:25
  Speaker 5: you blur that line, volatility becomes far more stressful than
• 11:28
  Speaker 5: it needs to be. You can go back to what
• 11:30
  Speaker 5: CJ said earlier about you know, if you're in your
• 11:33
  Speaker 5: working years and your four oh one K balanced to clients, yeah,
• 11:36
  Speaker 5: it's not great, but it's not impacting your short term
• 11:40
  Speaker 5: financial security. But what about people who are are maybe
• 11:44
  Speaker 5: on the other side of that. Because I hear this
• 11:45
  Speaker 5: from clients all the time. You know, it's great to
• 11:48
  Speaker 5: sit tight, but what if I'm in retirement and I
• 11:50
  Speaker 5: am living on my money. So that's where asset allocation
• 11:53
  Speaker 5: is going to play a major role. Your portfolio should
• 11:56
  Speaker 5: be designed so that no single outcome has to be
• 11:59
  Speaker 5: right for the plan to succeed. Okay, so we talk
• 12:01
  Speaker 5: about things like diversification all the time. Now, this doesn't
• 12:05
  Speaker 5: eliminate risk, but it makes risk more manageable, and this,
• 12:09
  Speaker 5: to me is one of the most important concepts for
• 12:11
  Speaker 5: folks to understand. I see it with clients all the time.
• 12:15
  Speaker 5: They get their statement every month or maybe every quarter.
• 12:18
  Speaker 5: They look at the total balance to see if it
• 12:20
  Speaker 5: went up or down. Right, that's the big measure of
• 12:23
  Speaker 5: how things are going at that moment. But what they're
• 12:26
  Speaker 5: not appreciating in that moment is that their account balance
• 12:29
  Speaker 5: is made up of a number of different components, right,
• 12:32
  Speaker 5: So there's not just one fund in there, or one
• 12:34
  Speaker 5: type of stock or type of investment. If you're properly
• 12:38
  Speaker 5: diversified in an asset allocation that is appropriate for your timeline,
• 12:42
  Speaker 5: then you should have access to liquidity to cover your
• 12:45
  Speaker 5: monthly withdrawal that month or for the next six months.
• 12:49
  Speaker 6: Whatever it might be.
• 12:51
  Speaker 5: So you should have access to liquidity within your portfolio
• 12:53
  Speaker 5: so that you don't need to sell that stock part
• 12:56
  Speaker 5: of your portfolio that declined a lot last month because
• 13:00
  Speaker 5: the market was volatile, right, So it's about creating an
• 13:04
  Speaker 5: understanding of just how you're invested and understanding that not
• 13:08
  Speaker 5: all of it is built to go up and down
• 13:12
  Speaker 5: drastically with the market, with our other more conservative, safer
• 13:15
  Speaker 5: pieces of that portfolio.
• 13:17
  Speaker 2: So we talked about this morning with Eric Schwartz and
• 13:20
  Speaker 2: CJ loss Or Retirement Plying professionals from Class Financial. So
• 13:22
  Speaker 2: we talk about being a resilient investor and of course
• 13:25
  Speaker 2: not just locking in on that ticker symbol.
• 13:28
  Speaker 6: And CJ.
• 13:28
  Speaker 2: Eric just talked about the importance of acid alification, allocation
• 13:33
  Speaker 2: and divers diversification. Kind of mix those two words up,
• 13:36
  Speaker 2: acid allocation and diversification. What else do folks need to
• 13:40
  Speaker 2: do when it when it's when it comes to thinking
• 13:42
  Speaker 2: about things related to their portfolio holdings.
• 13:47
  Speaker 3: Yeah, good question, Sean.
• 13:48
  Speaker 4: So you know, as I as I talk about this,
• 13:50
  Speaker 4: hearing Eric talk about acid allocation and diversification and controlling
• 13:55
  Speaker 4: our behaviors. It's funny because if you kind of go
• 13:57
  Speaker 4: back in time and say, hey, you know, when our
• 14:00
  Speaker 4: grandparents were growing up or maybe great grandparents, if we
• 14:04
  Speaker 4: had said, hey, you know, you can invest in this thing.
• 14:08
  Speaker 4: And if you do this thing that's diversified across thousands
• 14:13
  Speaker 4: of corporations around the world, and you just leave it alone,
• 14:17
  Speaker 4: you'll have some ups and downs, but you'll be able
• 14:19
  Speaker 4: to average I don't know, eight nine, ten percent a
• 14:21
  Speaker 4: year in most circumstances over ten year arcs. That in
• 14:26
  Speaker 4: and of itself is just mind boggling. One hundred years ago,
• 14:31
  Speaker 4: by mind boggling notion, people would go that is the
• 14:34
  Speaker 4: best thing ever and yet fascinatingly again, being human beings,
• 14:39
  Speaker 4: we like to complicate things or say.
• 14:42
  Speaker 3: That's not enough.
• 14:43
  Speaker 4: I want more, yes, right, And it is that desire
• 14:47
  Speaker 4: for more that leads us to believing we can get
• 14:50
  Speaker 4: more and get more by doing something unique. Now I'm
• 14:52
  Speaker 4: not saying that's necessarily a terrible desire.
• 14:55
  Speaker 3: I mean the desire for more and the desire for.
• 14:58
  Speaker 4: Unique new things as part of it drives business and
• 15:01
  Speaker 4: ingenuity and part of what makes America what it is.
• 15:05
  Speaker 4: But when it comes to investing, as Eric would attest,
• 15:08
  Speaker 4: this is a dangerous belief system because when you're dealing
• 15:12
  Speaker 4: with the public markets, your access to information is the key,
• 15:16
  Speaker 4: and unless you're an inside.
• 15:17
  Speaker 3: Trader, which, by the way, don't do that.
• 15:18
  Speaker 4: You're gonna end up in jail if you're inside trading.
• 15:21
  Speaker 4: Unless you're an inside trader, you're not going to get
• 15:24
  Speaker 4: access to information much faster than anybody else, and certainly
• 15:26
  Speaker 4: not faster than the Wall Street firms. Okay, with that
• 15:29
  Speaker 4: all being said, so this whole area of acid allocation,
• 15:34
  Speaker 4: we see investors get bogged down and they often are
• 15:37
  Speaker 4: like missing the.
• 15:37
  Speaker 3: Forest through the trees.
• 15:39
  Speaker 4: They tend to fixate on individual securities and short term performance,
• 15:43
  Speaker 4: and again they're losing sight of how the entire portfolio
• 15:47
  Speaker 4: works together. You know, today we're talking about resilient investors,
• 15:51
  Speaker 4: and resilient investing is about having a discipline system in place,
• 15:56
  Speaker 4: not following.
• 15:57
  Speaker 3: The next big story.
• 15:59
  Speaker 4: So as everybody, in recent years, we've seen a lot
• 16:01
  Speaker 4: of new trends in investing, things like cryptocurrencies. We've also
• 16:05
  Speaker 4: seen investment managers who show strong performance over short periods
• 16:10
  Speaker 4: of time, and suddenly those managers, you know, everybody wants
• 16:13
  Speaker 4: to jump into their fund. I'm thinking I'll take Kathy
• 16:16
  Speaker 4: Wood's ARC fund. Probably I'm not supposed to name specific
• 16:19
  Speaker 4: funds on this show, so nobody. This is not a
• 16:22
  Speaker 4: suggestion to buy or sell this fund, by the way,
• 16:24
  Speaker 4: but we'll take that as an example of this. You know,
• 16:26
  Speaker 4: it was this fund that invests in tech stocks NASDAC
• 16:30
  Speaker 4: based stocks that just suddenly had unbelievable returns double triple
• 16:36
  Speaker 4: what the overall market was doing. However, in most of
• 16:40
  Speaker 4: these cases, these managers aren't able to sustain their performance
• 16:44
  Speaker 4: over long periods of time, which, by the way, go
• 16:46
  Speaker 4: ahead and look at the ARC fund. You'll find out
• 16:48
  Speaker 4: what I'm talking about. And one of an investment manager
• 16:52
  Speaker 4: performs better than the market.
• 16:54
  Speaker 3: Think about this. If a manager is we're performing better
• 16:56
  Speaker 3: than the.
• 16:57
  Speaker 4: Overall market, then by definition and it means that they
• 17:01
  Speaker 4: are doing something different than the broad market obviously, and
• 17:05
  Speaker 4: that difference likely won't always be in favor of that
• 17:10
  Speaker 4: manager and the performance of that fund, and when that
• 17:12
  Speaker 4: comes you could see your investments underperform in the market.
• 17:16
  Speaker 3: Here would be an example of this.
• 17:17
  Speaker 4: Everybody a sixty to forty portfolio, which is often what
• 17:21
  Speaker 4: like diversified retire report clients will have I think the
• 17:25
  Speaker 4: longest rolling time frame it had where it was at
• 17:29
  Speaker 4: a loss, meaning it went from a high, went down
• 17:31
  Speaker 4: and then had you know, had.
• 17:32
  Speaker 3: To break back even.
• 17:34
  Speaker 4: One of the longest times in history was back in
• 17:36
  Speaker 4: two thousand and eight, and it was you know, call
• 17:38
  Speaker 4: it three ish years I think too, somewhere between two
• 17:41
  Speaker 4: and two and a half years before it broke even. However,
• 17:44
  Speaker 4: let's just say that you were chasing returns and you
• 17:46
  Speaker 4: decided to invest in the NASDAC and I'm actually saying
• 17:48
  Speaker 4: the whole Nasdaq. I'm not just saying a couple of
• 17:51
  Speaker 4: stocks in the Nasdaq NASZAK. By the way, we're talking
• 17:53
  Speaker 4: tech growth stocks primarily. Well, the longest time that took
• 17:59
  Speaker 4: to go down and break back even was about thirteen
• 18:03
  Speaker 4: years back in two thousand and one. So while it
• 18:08
  Speaker 4: sounds really fun and exciting to get into an industry
• 18:12
  Speaker 4: that is booming AI anybody, right, While it sounds amazing
• 18:16
  Speaker 4: and exciting, and certainly in short periods of time you
• 18:19
  Speaker 4: can get outside returns, but you are also getting outside polatility.
• 18:26
  Speaker 4: So with a properly diversified portfolio, you will often see
• 18:29
  Speaker 4: some of the holdings in your account perform worse than others.
• 18:34
  Speaker 3: And here's what we'd say that is expected.
• 18:37
  Speaker 4: We want holdings that behave differently in different market environments.
• 18:42
  Speaker 3: Each investment has a role to.
• 18:43
  Speaker 4: Play in your portfolio, and it helps to create a
• 18:47
  Speaker 4: broad strategy. When every piece has a purpose, investors are
• 18:51
  Speaker 4: far less likely to panic when one piece struggles. So,
• 18:56
  Speaker 4: as Eric was talking about, as much as we understand
• 18:59
  Speaker 4: investors want to pull out their statement and say, am
• 19:01
  Speaker 4: I up and down this month? What we would say
• 19:03
  Speaker 4: to you is look underneath the hood of that car.
• 19:06
  Speaker 4: If you are properly diversified, you should have some things
• 19:10
  Speaker 4: gaining and some things losing almost every single month. That's
• 19:16
  Speaker 4: what diversification provides is consistency and not as much of
• 19:20
  Speaker 4: the heis and.
• 19:21
  Speaker 6: Lows talking this morning with CJ.
• 19:23
  Speaker 2: Closs and Eric Schwartz, our retirement planning professionals from Class
• 19:26
  Speaker 2: Financial online Coss Financial dot com. And they're twelve number six,
• 19:29
  Speaker 2: so eight four four two five six three seven, So
• 19:32
  Speaker 2: we as we talked today, market stress is inevitable. How
• 19:35
  Speaker 2: should resilience investors then respond when it arrives?
• 19:39
  Speaker 5: Eric, Yeah, the first tip is usually to just slow
• 19:43
  Speaker 5: down relatility. It creates a sense of urgency that often
• 19:46
  Speaker 5: isn't justified. So instead of reacting to market news, what
• 19:50
  Speaker 5: a resilient investor is going to do is they're going
• 19:52
  Speaker 5: to return to their plan so they're going to return
• 19:54
  Speaker 5: to the well built financial plan because remember it already
• 19:58
  Speaker 5: assumes periods of de it does not depend.
• 20:01
  Speaker 3: On avoiding them.
• 20:03
  Speaker 5: So we said it earlier in the show, generally the
• 20:05
  Speaker 5: best reaction to market volatility is to do less. In fact,
• 20:10
  Speaker 5: there generally is an action that you should be taking
• 20:12
  Speaker 5: in response to market volatility. Most of the actions are
• 20:16
  Speaker 5: actually things that you've done in advance. Okay, so the
• 20:18
  Speaker 5: preparation that you do with your financial advisor before the
• 20:22
  Speaker 5: market becomes volatile. Investors without a clear plan feel every
• 20:27
  Speaker 5: market move much more intensely, and while those with structure
• 20:31
  Speaker 5: they can actually stay focused on their.
• 20:33
  Speaker 3: Long term goals.
• 20:34
  Speaker 5: So this means meeting regularly with your financial advisor to
• 20:38
  Speaker 5: make sure that your investment strategy is on track and
• 20:41
  Speaker 5: still appropriate for your time horizon. That way, when we
• 20:44
  Speaker 5: see market volatility, you know that your portfolio is prepared
• 20:48
  Speaker 5: and you have your assets in the right place to
• 20:49
  Speaker 5: whether it already.
• 20:51
  Speaker 6: As we talked this morning with Eric Schwartz and CJ.
• 20:53
  Speaker 2: Coloss, if you're going God, that's important, it's a great
• 20:56
  Speaker 2: day to make make that call, make that conversation, start
• 20:58
  Speaker 2: that conversation at class when they're telephone number six oh
• 21:01
  Speaker 2: eight four four two, five, six three seven. Don't forget
• 21:04
  Speaker 2: that initial get to know your ployment. It's not going
• 21:05
  Speaker 2: to cost you a thing again. They're telephone numbers six
• 21:07
  Speaker 2: O eight four four two five, six three seven. You
• 21:10
  Speaker 2: can add on over to class financial dot Com as well,
• 21:12
  Speaker 2: schedule that complimentary conversation right from the website Class financial
• 21:16
  Speaker 2: dot com. That's COSS k l a as Financial dot Com.
• 21:19
  Speaker 2: We'll continue our conversation with CJ and Eric. We will
• 21:22
  Speaker 2: do that next as Money in Motion with COSS Financial
• 21:25
  Speaker 2: continues right here on thirteen ten.
• 21:26
  Speaker 6: Wu Ibi.
• 21:33
  Speaker 1: This is Money in Motion with Class Financial, a fun
• 21:37
  Speaker 1: and informative show designed to help you get answers to
• 21:39
  Speaker 1: all your retirement questions in one place, just moments away from.
• 21:43
  Speaker 2: Your chance to win at twenty five dollars gift cards
• 21:45
  Speaker 2: to Starbucks with the claus Quiz Clash Week Talking this
• 21:48
  Speaker 2: morning with CJ Closs and Eric Schwartz about looking beyond
• 21:51
  Speaker 2: the ticker symbol, being that resilient investor and CJ. We've
• 21:55
  Speaker 2: covered what investors should do related to market volatility. What
• 21:59
  Speaker 2: are some things that they should then be avoiding. Yeah,
• 22:03
  Speaker 2: that's a great question.
• 22:04
  Speaker 4: Sean so I'm going to briefly describe a few pitfalls
• 22:07
  Speaker 4: to avoid. The first is constantly changing your strategy based
• 22:12
  Speaker 4: on recent market performance. Funny Mark, no worries markets are cyclical,
• 22:19
  Speaker 4: but human psychology is reactive, so that mismatch causes investors
• 22:23
  Speaker 4: to abandon good plans at the wrong time. An investment
• 22:27
  Speaker 4: strategy should be aligned to your goals. That means that
• 22:30
  Speaker 4: unless your goals have change, you probably shouldn't be changing
• 22:32
  Speaker 4: your investment strategy, especially in response to market movements. Another
• 22:37
  Speaker 4: pitfall to avoid is comparison. Every investor's circumstances are different,
• 22:42
  Speaker 4: and chasing someone else's results often means ignoring your own priorities.
• 22:47
  Speaker 4: Let's say that you're an investor who's five years from retirement.
• 22:50
  Speaker 4: Your coworker, who is ten years younger, has more capacity
• 22:53
  Speaker 4: to take on investment risk, of course, and that means
• 22:55
  Speaker 4: they may have a higher returns than you during strong
• 22:58
  Speaker 4: markets because they have more equity. Bosure, that doesn't mean
• 23:01
  Speaker 4: that you should increase your portfolio risk. Your goal of
• 23:04
  Speaker 4: retiring in five years requires you to be more cautious
• 23:07
  Speaker 4: with your investments to avoid steep losses in a market downturn.
• 23:10
  Speaker 4: Right before you need that money to start living off of.
• 23:13
  Speaker 4: So this is the you know, the proverbial, Oh my
• 23:15
  Speaker 4: neighbor got.
• 23:16
  Speaker 3: A new Audi, I need a new Audi, And.
• 23:18
  Speaker 4: It's like, yeah, but your neighbor just got a you know,
• 23:20
  Speaker 4: a million dollar bonus and you don't, right, So stop
• 23:24
  Speaker 4: stop the comparison game.
• 23:26
  Speaker 3: It's kind of like Facebook.
• 23:27
  Speaker 4: Stop going on Facebook and seeing where everybody's traveling, right,
• 23:30
  Speaker 4: So don't do the comparison game when it comes to
• 23:33
  Speaker 4: your portfolio because the way you invest may be different
• 23:38
  Speaker 4: than the way your neighbor does. And the last pitfall
• 23:41
  Speaker 4: that I'll mention is over concentration or putting too much
• 23:45
  Speaker 4: confidence in one stock or one sector or one idea.
• 23:49
  Speaker 4: In the battle against MARKT volatility, diversification is one of
• 23:52
  Speaker 4: your best weapons. Avoid the temptation to stray from your
• 23:56
  Speaker 4: investment strategy and load up on a specific sector of fund.
• 23:59
  Speaker 3: Just don't do that.
• 24:01
  Speaker 4: Not only does this increase your risk, but if the
• 24:04
  Speaker 4: strategy doesn't perform well, it feels personal and emotional decisions
• 24:08
  Speaker 4: tend to follow. So remain diversified and just listen. Try
• 24:11
  Speaker 4: to find a fiduciary advisor who builds broadly diversified, evidence
• 24:16
  Speaker 4: based portfolios. And then let the market do the rest
• 24:19
  Speaker 4: for you.
• 24:19
  Speaker 2: Well stated this morning, and before we wrap things up,
• 24:22
  Speaker 2: any final thoughts from you, Eric.
• 24:25
  Speaker 5: Yeah, I think as I've been kind of as we've
• 24:28
  Speaker 5: been going through the show today, I've been thinking, you know,
• 24:30
  Speaker 5: CJ and I spend every day talking to clients and
• 24:33
  Speaker 5: helping them navigate the world of investing. We understand how
• 24:37
  Speaker 5: stressful it can be when markets go down, and we
• 24:39
  Speaker 5: would love to be able to take that stress off
• 24:41
  Speaker 5: of our client's shoulders. But the reality is that timing
• 24:45
  Speaker 5: the market is extremely difficult to do over long periods
• 24:48
  Speaker 5: of time. In attempting to do it often leads to
• 24:51
  Speaker 5: worse outcomes and not better ones. So even in the
• 24:54
  Speaker 5: absence of a crystal ball to predict the future of
• 24:57
  Speaker 5: the markets, you can still find some level of control.
• 25:00
  Speaker 3: Okay.
• 25:00
  Speaker 5: You can put in place a financial plan that allows
• 25:03
  Speaker 5: you to accomplish your goals, and you can build an
• 25:05
  Speaker 5: investment strategy around that plan. You can build a strategy
• 25:09
  Speaker 5: that prepares you for the ups and the downs of
• 25:11
  Speaker 5: the market and doesn't depend on avoiding them, making market
• 25:15
  Speaker 5: volatility part of your plan, meaning it's like an expectation
• 25:19
  Speaker 5: and not a surprise that removes the power over you.
• 25:22
  Speaker 5: Because remember we said this earlier, Resilient investing is not
• 25:25
  Speaker 5: about avoiding risk. It's about choosing risks intentionally, intentionally and
• 25:31
  Speaker 5: staying aligned when markets test your confidence. Staying the course
• 25:34
  Speaker 5: can be difficult, especially in today's fast moving news culture.
• 25:38
  Speaker 5: The best piece of advice I can offer for staying
• 25:40
  Speaker 5: the course successfully is not to do it alone. So
• 25:43
  Speaker 5: J just mentioned this. Find an advisor that you trust
• 25:46
  Speaker 5: and lean on and when times come, I'm sorry, when
• 25:51
  Speaker 5: the time comes that the market does have some volatility,
• 25:55
  Speaker 5: lean on them. It doesn't need to be us, but
• 25:58
  Speaker 5: just make sure that you have that support system because
• 26:00
  Speaker 5: it really makes a big difference.
• 26:02
  Speaker 2: Really great stuff this week. If you miss any part
• 26:04
  Speaker 2: of the program, don't forget. You can listen back at
• 26:07
  Speaker 2: cossfinancial dot com. That's coss klaas financial dot com. Listen
• 26:11
  Speaker 2: back to this in previous program podcast right at classfinancial
• 26:14
  Speaker 2: dot com. Subscribe there as well. You can also schedule
• 26:18
  Speaker 2: a complimentary chat right from the website, or you can
• 26:20
  Speaker 2: call the office right here in Madison at six oh
• 26:22
  Speaker 2: eight four four two five, six three seven. No charge
• 26:26
  Speaker 2: for that initial get to know you appoyment Tech Loss
• 26:27
  Speaker 2: Financial eight will be complementary to you again their number
• 26:30
  Speaker 2: six oh eight four four two five, six three seven.
• 26:33
  Speaker 2: You're gonna want to hold on to that telephone number
• 26:35
  Speaker 2: now because it's time for the Closs Quiz Question of
• 26:37
  Speaker 2: the week.
• 26:37
  Speaker 6: It works like this. In just a moment, I'll ask
• 26:39
  Speaker 6: you the class Quiz question the week.
• 26:40
  Speaker 2: You will then have thirty minutes from the end today's
• 26:42
  Speaker 2: program to call the Class Financial Office right here in
• 26:44
  Speaker 2: Madison at six oh eight four four two five, six
• 26:48
  Speaker 2: three seven, and if you are the first call with
• 26:50
  Speaker 2: the correct answer to win this week's prize, which is
• 26:51
  Speaker 2: a twenty five dollars gift card to Starbucks. This week's
• 26:55
  Speaker 2: Closs Quiz question of the week. Is this true or false?
• 26:59
  Speaker 2: Time the market is it is easy to do and
• 27:03
  Speaker 2: should be implemented as a long term investment strategy. Is
• 27:07
  Speaker 2: that true or is that false? Tell phone number six
• 27:09
  Speaker 2: so eight four four two five six three seven first
• 27:12
  Speaker 2: call with correct answer on that twenty five dollars gift
• 27:14
  Speaker 2: card Starbucks.
• 27:15
  Speaker 6: Don't forget as well. That's Coss Financials Office right here
• 27:18
  Speaker 6: in Madison.
• 27:19
  Speaker 2: Eric CJ. It's always fun, it's always informed. It's great
• 27:22
  Speaker 2: hanging out with you guys. You enjoyed this fantastic day.
• 27:24
  Speaker 6: Thanks Sean, Thanks Sean. Take care guys.
• 27:26
  Speaker 2: Doctor Marty Greer comes your way next here on thirteen
• 27:28
  Speaker 2: ten WIBA. This is Money in Motion with Coss Financial
• 27:32
  Speaker 2: Asset Advisors LLC, a registered investment advisor registered with the SEC.
• 27:38
  Speaker 2: The contents of this show are for informational purposes only
• 27:41
  Speaker 2: and should not be considered individual investment advices.