(Video) Strategy 2 of 3 – Money Managers

This is not your father’s stock market! The days of “buy and hold” strategies are going the way of the Dodo bird. Find out how a different dynamic strategy might be able to give you a life jacket in the current stormy seas of the market. Come learn about Money Managers!

Video Transcript

Hey everybody how are we doing today? I hope that this message finds you well. I wanted to share this picture with you today. This handsome fella right there, that’s my dad. And this lovely lady right there, that’s my mom. This is a picture of them on their wedding day. Aren’t they a cute couple? Yeah, they are! That was a while ago!

Well, why am I showing you a picture of my parents? It actually does have a connection with what we are going to be talking about today. Which is Strategy number 2 on the Teachers Edge. Dealing with what is happening in your portfolio as we deal with what’s happening in the world with Covid-19.

 Now, why would I show you that picture?

Well, simply put, today’s stock market is not my parents’ stock market. And it’s not your parents’ stock market either. When our parents were preparing for retirement and investing, the market went like this, straight up. It was a bull market. They tell stories about putting different stocks on the wall and throwing darts at the stocks. Whatever they landed on, you could invest in those things and your portfolio did wonderfully. Today it’s a little bit different.

So, Strategy Number 2 is talking about using what’s called a Money Manager.

Our parents, my parents had a broker, and the broker would call, and the broker would say, “Let’s invest in this, let’s invest in that and were going to hold on and were going to hope that eventually, you are going to see good growth over time. Hope that you’re not going to have to take anything out when the market is down. That is how it used to work. Right? However, if I have two to three hundred clients, can I physically, actually in a day, can I feasibly individualize those portfolios? Research all of those funds that I’m talking about to folks. And tell them when to get in or out? No, I can’t it’s impossible. So what a money manager does is we pay that money manager to look at the portfolio. The portfolio is based on a risk tolerance and on a daily, a monthly, a quarterly, whatever the time frame is. That portfolio goes through some tests. Whatever is in the portfolio, if it passes the tests, YAY! It gets to stay in. But if it The Money Managing Machine doesn’t, it gets out.

So as you can see, the funds start at the top of the tunnel, they go down through a series of tests, come out the other end, and a non-emotional formulaic decision. This gives my clients peace of mind knowing that they have an exit and entrance strategy to what they have in their portfolio. It’s very unemotional, it’s very formulaic and it’s not that nobody ever loses money. I can’t promise you that. I wish I could, I really do. But what it can do is give you a life jacket. So, as you traverse the seas of the market, you have a little bit of a safety net there. That helps mitigate some of the risks that you had taken in the past.

So Strategy Number 2, Money Managers.

If you’d like to be able to talk to me about this, especially at this time when the market is so volatile. Boy, a lot of people could benefit from being in one o  f these managers to know when to get in and out. As the market is so volatile.

Sara and her Mom while talking about Money Managers

If you’d like to talk with me about it, or any other retirement strategy for that matter. I’m here! There will be a slide at the end of this video, showing you how you can schedule some time where we can chat on the phone. Or we can talk like this in person, which I’m getting more used to. I wonder if you folks are as well? But until I talk to you again. If you haven’t, recently, you should tell your parents if you still can that you love them. This is my mom and she knows I love her. So Until I talk to you again, I wish you well and happy Hibernation!

If you would like further information on planning for or reevaluating your retirement, or simply want to chat, give us a call at 231-421-7391.

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