Quick Hits: All Hands on Deck! | Stressed Americans | Essentials of Opportunity

May 20, 2022

I’m sure I’m preaching to the choir here…

Dips in the market create worry for most investors. Worried investors tend to act with an intelligent mindset.

Downturns in the 15-20% range create more anxious investors and anxious investors tend to freeze up and rely on hope instead of logic.

Some of your prospects and clients are in the “Anxious” stage right now and need you help!

I encourage you to send as much communication out to your prospect lists right now as you can!

Emails, texts, facebook posts, call outs…all hands on deck!

Now is the time to be showing your value to the prospects where timing wasn’t right before.

A few ideas around communication and strategies:

FIAs with account value bonuses and great cap rates. Recoup the losses and grab the gains on the upside
Roth conversions in a down market: Use the slinky analogy from David Brooks – Fast forward to the 6 min mark
Bond alternatives – Use the Windstead email and process here & Email template here

Here are your Quick Hits:

Critical article and video to share with prospects and clients
“Eighty-seven percent of Americans said that inflation and the rising costs of everyday goods is what’s driving their stress,”
“Some Americans lack hope they will ever have enough money to retire, with roughly 40% saying their ability to be financially secure in retirement is “going to take a miracle,” according to the 2021 Natixis Global Retirement Index.”

As advisors we know Bond’s are not the “Safe” vehicle in this environment, but a lot of your clients still don’t know this. This article is a great resource to share.
“The rapid monetary tightening priced in by markets has created more value in fixed income markets, but the asset class still faces the headwinds of high inflation, robust growth, and increasing government bond supply as central banks begin to unwind their balance sheets,” said Erin Browne, Geraldine Sundstrom and Emmanuel Sharef, portfolio managers for asset allocation at Pimco.
“The classic 60/40 portfolio mix of equities and quality bonds registered a decline of 7% during April, its worst run since March of 2020, as both asset classes were hit at the same time.”
Side note: PIMCO manages over $2 Trillion and a good portion of this is bonds…

Despite all efforts form the Whitehouse and the Federal Reserve, every day Americans are experiencing rising prices
“fresh data released Wednesday showed, a challenge for households that are trying to shoulder rising expenses and for the White House and Federal Reserve as they try to put the economy on a steadier path.”
“Many analysts have been predicting a slowdown in price increases or even outright price cuts on many goods, but those forecasts look increasingly uncertain. Lockdowns in China and the war in Ukraine threaten to exacerbate supply shortages for semiconductor chips, commodities and other important products.”

With more success comes more opportunities. As a leader it is important when to act and when to look for the next one.
“Opportunity takes ‘now’ for an answer”
“Motivated people often find opportunities. Opportunities often find motivated people”

Posted in Quick Hits