Broker Check

The Weekly Update 3/10/2023

| March 10, 2023


During volatile times in the market, and even during less-volatile times, it is important to remember that there are some factors that are out of our control as both financial advisors and investors. Of course, it is much easier to remember this when the market is trending up, but it is often needed most when market volatility is in full swing.

As a Certified Financial Planner™ and your valued Investment Advisor, it is my job to have the knowledge and experience to navigate the tumultuous waters during the times that seem to be “out of our control”. Just because certain events are out of our control doesn’t mean we have to be unprepared or that we can’t aim to be one step ahead in anticipating what could happen next.

Yes, market returns, future tax policy, Federal Funds Rates, and legislative/regulatory reforms are out of our control. BUT being educated on the overall economic environment and what the future may look like allows us to be properly positioned for respective market movement. Thus, asset allocation and location are factors we have total control over and can position them to potentially combat the market returns and policy that we do not have control over.

For example, understanding that the Government stimulus packages that were handed out to Americans in 2020/2021 would create inflation and then understanding how inflation effects certain investment sectors is in our control. The impacts of war between Russia and Ukraine is out of our control, but understanding that it provides opportunities in certain sectors is in our control. Education and economic awareness allows us to create a proper investment allocation around uncontrollable events and factors.

Similarly, humans have “some control” over employment earnings and longevity. If you smoke 5 packs of cigarettes and drink a bottle of whiskey every day, chances are your longevity won’t be very long! BUT you could also eat healthy, exercise often, and then get hit by the Coors Truck i.e. longevity is somewhat in our control.

Worrying about things we can’t control only causes stress without providing any up-side.

The best way to set yourself up for a confident retirement is to focus on the factors that we can control or have partial control over. Contributing to savings, participating in tax-advantaged accounts, setting our bodies and brains up for success, and creating an appropriate investment allocation are all factors that we can use to our advantage.

If you don’t have a plan or don’t feel confident in the plan you currently have, now is the best time to set up a time to take a firm grasp on the factors that we can control and put them to work for you and your future self!

I am interested in your thoughts, comments, and questions!

Respectfully,

Brittany N. Jarocki, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.  To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.  Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results.  All indices are unmanaged and may not be invested into directly.