By LouAnn Schulfer, AWMA®, AIF®
Accredited Wealth Management Advisor^SM
Accredited Investment Fiduciary®

When the financial markets started losing value toward the end of February, we ramped up communication with our clientele. When the markets continued to lose value into March and news began breaking, we were diligently making calls to our clients. We updated them with real data on how their portfolios were holding up, had conversations about how they were feeling, and listened to how they were processing information about the economy and the financial markets reaction to COVID-19.

It tends to surprise people when they ask me how I and others are holding up, and I respond, “overall, just fine”.  I am not hearing panic from my clients. I am not hearing fear, regret, terror or Armageddon. Rather, consensus is that we are going to make it through this, and it’s a great opportunity to assess our individual financial positions.  For over a year at our client meetings, we’ve been talking about the next financial downturn; it’s not a matter of “if”, it’s a matter of “when”, how are your investments positioned and what you may expect. Fundamentals like “bucket” strategizing:  having adequate money in short term buckets positioned conservatively, mid-term buckets positioned moderately and long-term buckets positioned for long-term growth. Additionally, many of our clients had already opted for contractual risk management offered through a variety of companies utilizing different strategies.

Many conversations have now turned to “what can we do?” We’ve had a spike in the number of clients and non-clients calling us asking if they can add money to their investments or even open new accounts. We’ve been visiting the idea of ROTH IRA conversions for some people. We’ve been talking tax-harvesting with others. Our discussions of risk management continue on. These are complex times. Decisions need to be made on an individual basis:  what is right for one client is not necessarily right for another, because so many individual circumstances vary.

I like the saying “You can’t control the hand you’ve been dealt, but you can control how you play the cards”. For the past couple of weeks, this is precisely the essence of what I am hearing.

LouAnn Schulfer is co-owner of Schulfer & Associates, LLC Wealth Management and can be reached at (715) 343-9600 or louann.schulfer@lpl.com.  www.SchulferAndAssociates.com
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Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

All investing involves risk including loss of principal. No strategy assures success or protects against loss. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Traditional IRA account owners should consider the tax ramifications, age and income restrictions in regards to executing a conversion from a Traditional IRA to a Roth IRA. The converted amount is generally subject to income taxation.