Join us every Thursday as our founder, James Hutcheson, leads a conversation with family business owners and industry experts on the challenges we are facing as we manage our business through a pandemic.
In this episode we talk about how to not panic in the face of a major change in your financial assets. Here are some highlights form that discussion. Click here to listen to the whole conversation.
Stay Calm!
Recognize Emotions – Don’t React. Understand your own risk tolerance and work with your professional wealth manager to keep right sized and balanced.
Stay In!
Compound interest is the 8th wonder of the world. If you invested for the period between 1998 and 2018 (20 years) you would have averaged about 8% annual return. If you missed the 10 best days in the market you earned 4%. If you missed the 20 best days during the same period, you earned less than 0%.
Stay Liquid!
Hold one year of capital in your business and one to two years of cash for personal use. Real Estate is not a safe haven today. Real Estate is susceptible to cash flow problems and difficult to get out of. Take caution with Bonds. Bear markets typically last about 18 months. We are only two months in. Be aware of the fees that your agent may be charging you. Be curious, ask questions, understand what is happening with your money.
