Market Tops 25,000 -- Scratch that, 26,000 -- Do We Hear 30,000?*

The market hits 25,000(and now 26,000) and now everyone under the sun (your work buddies included) are market gurus, self-proclaimed do-it-yourself market geniuses who can do better, cheaper, you name it -- all geniuses! Wow, feeling good!!! Maybe you're thinking, "Hmmmm, maybe I'll do it myself..."

And recently I read this from a “Market Expert -- > ”Since I don’t believe the market can be timed correctly and consistently, I favor an unworldly, dumb-money approach: Stay invested at all times...through wide diversification and an always-in the market portfolio, you’ll generate good-enough growth in your portfolio.” Note: Sounds good in theory, but he did say "dumb-money approach", he said it, not us, but do you really want to settle for a "dumb-money" approach for your serious retirement moneys?

While your buddies have probably done really well as of late (cough cough who hasn't?) and undoubtedly the above market expert's “unworldly dumb-money approach” has done astonishingly well since the market bottomed March of 2009. (doing 15.5% --considerably ahead of the market’s historical 10% average). GULP -- it also lost almost 50% in 18 months (YES, LOST -50%!!!!) from 10/07 - 3/09 during the “financial crisis” of 2008 which cut your returns almost in half from 15.5% to 8.5% -- and that was IF you include those 18 months of a devastating -50% market (i.e your moneys got cut in half) and also IF (a BIG IF) you somehow stomached all that and stayed fully invested ( again, a BIG BIG IF).

That “IF” is the trouble and major emotional flaw in most all investors. Most of us can't stomach watching $1million go to $500k before it ever hopefully goes to $2million. So, if you are thinking "I’ll do I myself, leave it with the state, just buy the index, do what my buddy does", and think you can stay invested through thick and thin (major market swings) and that life will be grand la la la, well, you may wish to re-think that.

Truth is, very few people can stick it out through the “thin”(rocky rollercoaster double-digit down months and more) and who wants to? And we have not seen any "thin" for quite some time. Trouble is we are inherently savers, not investors, and we are emotional when it comes to our own money so these aforementioned “dumb unworldly” strategies only deliver IF you can hold on through bad markets and very few can. If you saw your $1million lose $500,000 in 18 months could you hold on?  

Met with a retired firefighter this past week(Jan 2018) who retired with $900,000 and grew it to $1.2mil only to watch it get cut in half go to $600,000 (-50%) during that 2008 market. He yanked it all out at the bottom and has been sitting in the money markets since and has agonized as the market doubled, tripled, now quadrupled since then?!? Now he feels he is "missing the boat" and wants to get back in the market?!?!

What if there was another way to grow your money, in a smoother fashion -- without suffering through these huge market devastations that can and do happen?  Well, there just may be a way to just that.   

Let's talk...

Your buddy, the state, and anyone can get you IN the market -- SWAN can get you OUT!

Let's talk about your existing moneys or soon-to-be DROP, 457, FRS Investment Plan moneys. 401ks? IRAs? Other? Contact me today --> 954-494-2134

Mark Burnam

Director of Client Services at The Second Half Team

* This article is intended to be an educational ABC's piece and are not promises or guarantees of financial security. While The Second Half Team is working with 500+ First Responders (and more) at 200+ departments/agencies around Florida we are independent of and not affiliated in any way with the Florida Retirement System (FRS) and hence any/all information provided by the Second Half Team has not been approved or endorsed by FRS or any Chapter 175 pension plans/board members/or otherwise. Past performance is not a guarantee of future results. This article is for informational or client communication purposes only and is not a solicitation or recommendation to buy or invest in any product or service. Investment in any financial instrument can carry significant risks. Past performance is not a guarantee or indication of future results. Investors are reminded that investing involves risk, including the possible loss of the principal amount invested. This article was written by Mark Burnam prior to joining Swaine & Leidel Wealth Services, LLC, dba the Second Half Team (the "Firm"). You should carefully consider the investment objectives, risks, charges and expenses of Swaine & Leidel Wealth Services, LLC, dba the Second Half Team (the "Firm") before investing. Information on the Firm and its advisors can be found on SEC's website https://adviserinfo.sec.gov. The CRD number for the Firm is 163454. Investment advice is provided by Swaine & Leidel Wealth Services, LLC, dba the Second Half Team, and SEC Registered Investment Adviser. We are not CPAs or Tax Advisors – you should consult with your CPA or tax advisor regarding your particular tax situation. We are more than happy to discuss with them as well if you so desire. 

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