How Paying Attention To Sectors Can Help Manage Portfolio Risk
ln 1992, a very popular presidential strategist once said, "lt's the economy, stupid." Admittedly, I fully agreed with Mr. James Carville back then, and it's still true today, Still, allow me to be equally as blunt when I say, "lt's the sectors of the economy, stupid."
Beware the 4% Rule
I was listening to the radio after a day at the office when I heard a question posed to a very popular financial radio personality: "ls a 6% annual withdrawal rate too high for me to consider taking out of my portfolio to supplement my retirement income?" The radio host replied, "No, not at all. If you maintain a good amount of growth stock mutual funds, which have averaged over 10% a year you will be fine." Unbelievable! I would be horrified to find any financial consultant worth their salt agree with the above statement in fact, the Wall Street Journal made a good case for not relying on the very common 4% rule!
Understanding the Role of Your Financial Consultant
Do you like hats? I do, especially as Summer comes around. You might say that my "lrish Blood" instinctively draws me away from the sun, perhaps it is because I am now in the '50' club, or perhaps it is because I turn red like a lobster. It doesn't really matter why I like hats, right? The financial consulting industry has a lot of hats that parade around, too, and the sad thing of it is that the typical client has no idea what hat is being worn by a financial consultant.
DO YOU CONTROL YOUR MONEY, OR DOES YOUR MONEY CONTROL YOU?
As a child through unforeseen circumstances, ln mother was left raising three young children. There were times when we were asked to look through our toy boxes for loose change just to buy a quart of milk. Her excuse to protect us was to say, "I do not want to break a five dollar bi11." Growing older I learned the real reasons and that impacted and shaped me as to how I view money today. As a result, I have had to overcome fears as to what money can and cannot do. Financial successes or traumas have the ability to shape our future relationships with our money.
Chamber of Commerce
March 5th 2020 Chamber of Commerce Letter