March 25, 2020 - Published by IAG Wealth Partners

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This is the moment of truth.

You have seen the financial markets fall over the course of the last month. You are cooped up in your home and deprived of your normal social contacts. Your life has been turned upside down by a microscopic virus.

What do you do? Do you act on your fears and participate with the panickers?

Or do you acknowledge your fears but steadfastly and courageously abide by long-term logic?

This is your moment of truth.

Turbulent times such as these are when people historically make decisions that cause irreparable financial harm to their families in momentary fear-induced lapses of judgment.

We heartily encourage you to make great decisions based on the foundation of long-term logic and your financial plan.

Here are some helpful time-tested truths to help you make the right decision:


  1. This hurts. It is painful to the brain. Help yourself by not reinforcing the pain. Minimize or avoid checking your accounts, looking at your statements, or watching financial news until this passes.


  1. Think ahead, not behind. Yes, the financial markets have been in turmoil because of so much uncertainty the last month. This level of uncertainty is not perpetual. We will get through this, we will adapt, and the future is much brighter than anyone can possibly see right now.


  1. Don’t make losses permanent. Locking in losses by selling destroys your future returns. While you may be able to convince yourself that you will “get back in” when the markets are “safer,” that is always AFTER the market has gone back up. Selling low and buying high is a guaranteed way to lose real money (though disorienting fear may make it feel like the right thing to do at the time).


  1. Do stick to a disciplined investment plan. IAG clients all have a personal Portfolio GPSTM to guide you toward your destination based on your unique goals. Right now we are driving through a disorienting fog at night. There is no better time to rely on the voice of your advisor and your Portfolio GPSTM to help you keep moving in the right direction.


  1. If you feel you must do something, do something that helps you instead of hurts you. In coordination with your tax planning professional, consider a strategy to harvest tax losses in taxable accounts to provide a recurring annual tax deduction of up to $3,000 per year. Or ask your tax professional if you should convert a portion of your tax-deferred retirement accounts to Roth retirement accounts. If this is done properly, when the markets turn around your gains could be tax-free.


  1. Help others. There is no greater reward than helping other people. Be a source of positive thoughts, encouragement, and support for those in need of each one of these.

We know these times are challenging. We understand and feel the same uncertainties and fears. We will emerge from this darkness together in due time. Our prayers are that you stay healthy and safe.



Quote of the week: Warren Buffet: “The intelligent investor realizes that stocks become more risky, not less, as their prices rise – and less risky, not more, as their prices fall. The intelligent investor dreads a bull market, since it makes stocks more costly to buy. And conversely (so long as you keep enough cash on hand to meet your spending needs) you should welcome a bear market, since it puts stocks back on sale.”

Securities offered through LPL Financial. Member FINRA/SIPC. Investment advice offered through IAG Wealth Partners, LLC, (IAG) a registered investment advisor and separate entity from LPL Financial.

Past performance is no guarantee of future performance. In fact, the opposite can be true. The information contained in this report does not purport to be a complete description of the securities, markets, or development referred to in this material. Investing involves risk including loss of principal.

Any opinions are those of IAG and not necessarily those of LPL Financial. Expressions of opinion are as of this date and are subject to change without notice. This information is not intended as a solicitation or an offer to buy or sell any security referred to herein. No strategy assures success or protects against loss. Investing involves risk including loss of principal.

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