Let's "spend money" now for anticipated expenditures
2020 has certainly been interesting, to put it mildly, and we still have a ways to go before a true recovery of our public health, our economy, our government, and our society is achieved.
The markets have already rallied significantly. We discussed in our last communication - Wall Street versus Main Street - the misalignment of market assumptions and realities currently facing struggling businesses and citizens alike. In our opinion, this dislocation leads us to expect further volatility in the coming months.
As such, we believe it is prudent to revisit and challenge the families we serve to understand their potential cash needs for the near-term and "spend the money now" by earmarking funds and setting them aside. If you know that in the next 1-2 years you will have a large expense in excess of your typical spending (family trips, new windows for the home, new car, basement renovation, education costs, etc.), we should consider taking advantage of the market rally to create needed cash - such expenditures are truly short-term in nature and have no business being invested in the equity markets.
If you would like to discuss your personal situation in greater depth, give us a call.