In this uncertain economic time, The Ledger is holding an online discussion and Q&A from 4:30-5:30 about personal finance with three local Certified Financial Planners. Have questions about retirement savings, college savings, how to pay down debt or something else that affects your pocketbook? Join The Ledger and Kris Carroll of Carroll Financial Associates, Will Ertel of Tassel Capital Management and Nick Foy of Greenway Wealth Advisors. Join us or read later.
OK, we will call it a day. Thank you again to our guests, Kris Carroll of Carroll Financial, Will Ertel of Tassel Capital and Nick Foy of Greenway Wealth. And thanks to all for the good questions.
Guys, in your replies to questions, if you could please use the "reply" button under the question, it will help keep the discussion more organized, thanks
Today, they are taking questions about personal finance, as the stock market is volatile (indexes fell another 4-6% again today), and there appears to be a lot of financial disruption heading our way. They are not here to give stock recommendations. If you have a question, it might be helpful to give a little background about your situation. We will go until 5:30pm and will try to answer as many questions as time allows.
Good afternoon, everybody. This is Tony Mecia with The Charlotte Ledger, a business e-newsletter and online publication focusing on original, local business news, which lately has been almost all related to the effects of the coronavirus. You can find out more about us at https://charlotteledger.substack.com/. There is a free version you are welcome to sign up for, as well as a paid version that gives you access to everything we do.
It looks as though the new questions are about at an end, so we will wrap this up. But before we do, does anybody have any general nuggets of wisdom they would like to share?
It usually takes a few minutes for folks to get in here. One question I saw today: If the government gives out stimulus checks, what's the best way to use those: save, spend, pay down debt or something else?
Nick Foy, CFP, is founder of Greenway Wealth Advisors, an independent firm based in South End. His company specializes in working with generation x and y clients.
Will Ertel is a CFP and CPA. He founded Tassel Capital in 2002 and serves planning and investment clients in the Charlotte area from his Matthews office (though mostly with Zoom this month).
Kris Carroll, CFA, CFP, is a financial advisor and owner of Carroll Financial Associates, an independent RIA in Charlotte, which was founded in 1980 and currently manages over $3 billion in client assets.
Good question Josh. We really see this as more of a 9/11 type of event, a shock to the system, than a event with financial origins. Now, of course, it's bled over into the realm of finance and is impacting the entire economy. But if we can get a handle on the issues related to the disease itself, I'd expect there to be a lot of pent up demand and for the market to recover pretty rapidly.
One general comment about risk. There are many investors who felt like an 80% stock mix was okay who are now realizing they are uncomfortable with it. It is sooooo difficult to adopt a moderate to balanced strategy when things are going up - like from 2009 - 2019 with a few exceptions. Important to always be assessing both your risk appetite and your risk capacity.... that's where I think professional advisors can help clients the most....
The real enemy for most long-term investors isn't these types of events when the market goes mad. For long-term investors (that includes some retirees who might live into their 90's) is inflation eroding the value of our dollars.
I saw that question come to you, and I think you had the right answer; it depends. For many Americans, just having enough liquidity is an issue, so even if there is some outstanding credit card debt, holding sufficient funds in a high yield savings account (i.e. not with a brick and mortar bank paying 0.10%) is really important.
David: for retirees, it's so important to have enough in "conservative" assets that aren't as affected by stock market risk. Of course, when the market is in full blown panic mode, everything seems to move in lockstep. But, over the intermediate and long-term, we have a pretty good idea of the types of assets that are less volatile and can form the foundation of a portfolio. For many of our retired clients, it's a balancing act between not taking on too much market risk so that the portfolio won't drop by 40% when the market does, but taking on enough market risk to minimize longevity risk, that is the risk of outliving your assets.
If I receive a check, with no way to opt out, I would donate it to Crisis Assistance Ministry. If it isn’t tax-free, then would I be able to deduct it?
Hey, Nick, this is Jody do you think a small business like my medical practice will get some quick help if we continue to keep our employees hired? We saw 6 patients today, this is our biggest season, but we have tried to avoid exposures to staff and our patients which I think is the right thing to do. Several physicians have called and heard we are "closed" we are not actually closed just limiting who we see and doing many telephone calls. All physicians have expressed what a financial crisis this is going to be for them. I'm sure besides the real threat of catching this terrible virus we are worried about surviving as a business.
Can your speaker address market liquidity, specifically ability for business to get lines of credit. Is the US Treasury getting into providing this? If so, do they have the platforms set up to do it quickly?
A common question I suspect: any wisdom for older folks living off carefully curated retirement savings beyond living small and trying to ride out the turbulence?
Nancy, in all likelihood you would just a check in the mail. I assume it would be tax-free (more details to follow) , so I would suggest you keep it....
The market was gangbusters until only recently, even as CORVID-19 marched across Asia. Is there reason for optimism, that once the worst of the pandemic is behind us, we will have a faster recovery than in 2009? And how should our thinking about recovery influence how we invest for the next 180 days?
OK, we will call it a day. Thank you again to our guests, Kris Carroll of Carroll Financial, Will Ertel of Tassel Capital and Nick Foy of Greenway Wealth. And thanks to all for the good questions.
Guys, in your replies to questions, if you could please use the "reply" button under the question, it will help keep the discussion more organized, thanks
Today, they are taking questions about personal finance, as the stock market is volatile (indexes fell another 4-6% again today), and there appears to be a lot of financial disruption heading our way. They are not here to give stock recommendations. If you have a question, it might be helpful to give a little background about your situation. We will go until 5:30pm and will try to answer as many questions as time allows.
We are joined today by three local financial advisors.
Good afternoon, everybody. This is Tony Mecia with The Charlotte Ledger, a business e-newsletter and online publication focusing on original, local business news, which lately has been almost all related to the effects of the coronavirus. You can find out more about us at https://charlotteledger.substack.com/. There is a free version you are welcome to sign up for, as well as a paid version that gives you access to everything we do.
It looks as though the new questions are about at an end, so we will wrap this up. But before we do, does anybody have any general nuggets of wisdom they would like to share?
Have any of you made recommendations on asset allocations recently?
What are some of the most common concerns you are hearing from clients this week, and how are you addressing them?
It usually takes a few minutes for folks to get in here. One question I saw today: If the government gives out stimulus checks, what's the best way to use those: save, spend, pay down debt or something else?
Thank you, Kris, Will and Nick, for being here and testing out this format. If you have a question, go ahead and ask it.
Nick Foy, CFP, is founder of Greenway Wealth Advisors, an independent firm based in South End. His company specializes in working with generation x and y clients.
Will Ertel is a CFP and CPA. He founded Tassel Capital in 2002 and serves planning and investment clients in the Charlotte area from his Matthews office (though mostly with Zoom this month).
Kris Carroll, CFA, CFP, is a financial advisor and owner of Carroll Financial Associates, an independent RIA in Charlotte, which was founded in 1980 and currently manages over $3 billion in client assets.
Good question Josh. We really see this as more of a 9/11 type of event, a shock to the system, than a event with financial origins. Now, of course, it's bled over into the realm of finance and is impacting the entire economy. But if we can get a handle on the issues related to the disease itself, I'd expect there to be a lot of pent up demand and for the market to recover pretty rapidly.
One general comment about risk. There are many investors who felt like an 80% stock mix was okay who are now realizing they are uncomfortable with it. It is sooooo difficult to adopt a moderate to balanced strategy when things are going up - like from 2009 - 2019 with a few exceptions. Important to always be assessing both your risk appetite and your risk capacity.... that's where I think professional advisors can help clients the most....
The real enemy for most long-term investors isn't these types of events when the market goes mad. For long-term investors (that includes some retirees who might live into their 90's) is inflation eroding the value of our dollars.
I saw that question come to you, and I think you had the right answer; it depends. For many Americans, just having enough liquidity is an issue, so even if there is some outstanding credit card debt, holding sufficient funds in a high yield savings account (i.e. not with a brick and mortar bank paying 0.10%) is really important.
David: for retirees, it's so important to have enough in "conservative" assets that aren't as affected by stock market risk. Of course, when the market is in full blown panic mode, everything seems to move in lockstep. But, over the intermediate and long-term, we have a pretty good idea of the types of assets that are less volatile and can form the foundation of a portfolio. For many of our retired clients, it's a balancing act between not taking on too much market risk so that the portfolio won't drop by 40% when the market does, but taking on enough market risk to minimize longevity risk, that is the risk of outliving your assets.
How much do you think the market turmoil is Covid-19 and how much is the oil wars? And any thoughts on how the oil war will ultimately play out?
If I receive a check, with no way to opt out, I would donate it to Crisis Assistance Ministry. If it isn’t tax-free, then would I be able to deduct it?
Thank you, Nick
Also, regarding stimulus checks, surely there will be a way to opt out of receiving one?
Very nice and informative article. LOVED the simple yet through writing. I too have just started a blog, and am awaiting nice comments.
Hey, Nick, this is Jody do you think a small business like my medical practice will get some quick help if we continue to keep our employees hired? We saw 6 patients today, this is our biggest season, but we have tried to avoid exposures to staff and our patients which I think is the right thing to do. Several physicians have called and heard we are "closed" we are not actually closed just limiting who we see and doing many telephone calls. All physicians have expressed what a financial crisis this is going to be for them. I'm sure besides the real threat of catching this terrible virus we are worried about surviving as a business.
Thanks Will and Kris
Part of our monthly income is an annuity.
How ”safe” Is that?
What do you think of John Childs suggestion in an article this week of the Treasury buying equities (ETFs only to keep the scales even). https://www.realclearpolitics.com/2020/03/14/why_not_equity_504499.html#!
Hello! Any crystal-ball gazing on the real estate market? We were just about to buy a home (and sell a couple of investment properties.)
Can your speaker address market liquidity, specifically ability for business to get lines of credit. Is the US Treasury getting into providing this? If so, do they have the platforms set up to do it quickly?
A common question I suspect: any wisdom for older folks living off carefully curated retirement savings beyond living small and trying to ride out the turbulence?
Can we ”ride out” a full-blown depression?
Nancy, in all likelihood you would just a check in the mail. I assume it would be tax-free (more details to follow) , so I would suggest you keep it....
I was thinking about that today too, Nancy. I haven't read the details but it would be nice to make sure they go to those who are really in need.
But when? Who knows.
The market was gangbusters until only recently, even as CORVID-19 marched across Asia. Is there reason for optimism, that once the worst of the pandemic is behind us, we will have a faster recovery than in 2009? And how should our thinking about recovery influence how we invest for the next 180 days?
Glad to be here! Thanks, Tony.