I was doing some research and came upon the phrase; ‘the voice of reason’. I hadn’t heard it in a while so I did some digging. The voice of reason requires three elements; it must be insightful, relatable and actionable. Let’s look at each.
Insightful – According to a dictionary an insightful thought must have an accurate and deep understanding, be perceptive. In today’s harried pace and information overload, I think it is difficult to stop and think through some things. I don’t mean like what’s for dinner but more like what is my next career move, or when should I retire? Or what will I do in retirement? I often get a strange look when I ask what someone is doing during retirement. Like NOT working provides enough joy without further explanation.
Relatable – Stories are wonderful as they capture our imagination and sometimes teach a lesson. I can tell a client that a portfolio has an averaged 10% annual return, but what is relatable is that the portfolio will grow sufficiently to keep up with inflation and last as long as they plan on living.
Actionable – The ability to see clearly what must be done next. Tell a college grad to get a job and it leaves something to be desired. Helping them understand the cost of living, the purpose to saving and how to think about money, will get the grad further along in life.
This line of thought has made me think more deeply about our procedures here at Harvest Financial. Hopefully, you can see the fruits as we move forward.
I want to introduce Tim Wenger to you. Tim is interested in becoming part of Harvest Financial. He has been an advisor for 11 years and has his business in Colorado Springs, Colorado. You may be thinking, “but Harvest is in Napa, is he moving?” With today’s technology anything is possible. I remember meeting with a doctor who worked with a group in Australia - half way around the world! It made for a great team as one group worked while the other slept – 24 hour care! Not quite the same for us, but very doable. Tim will be here in Napa the week of April 28 and you will hear more of this adventure in the days and weeks to come.
Last, but not least, let’s talk investment markets. I am writing this just after the Easter weekend. The S&P 500 is down 12.3 year to date and the 10 year Treasury is yielding 4.4% down from the start of the year at 4.5%. Tough to find good news. Tariffs, Trump’s relationship with the Federal Reserve and the World for that matter, inflation, unemployment and DOGE are among the many factors affecting the investment markets. What’s an investor to do (remember insightful, relatable and actionable)? I have been having more than a few conversations on this topic and I want to stress that I look at the individual and their goals/needs. Second, I don’t believe we have heard the final on tariffs, let alone can measure their effect. I do know that each of us has a differing basket of goods. I won’t be buying as many cars and TVs in my future compared to younger clients. One common concern is fruits and vegetables and the cost of eating in our future. What can you do?
1. If you have cash, consider investing at the low points. Think about how much pleasure you get in buying your favorite pair of shoes 13% off?
2. No cash but want to increase risk; consider moving some fixed income items to the stock market
3. Ready to hide - we can make changes to your portfolio. However, let me remind you of my house purchase in 1991. We had 3.75 children when we moved to Napa (#4 was born in October) so we needed a couple of bedrooms and we bought a house. For the next two years, the price of that house decreased, BUT I still needed the same number of bedrooms etc., so I didn’t sell. You can imagine what the house is worth now. Admittedly, not everyone has 34 years, so give us a call and we can discuss options.
4. Control YOUR controllables. Turn off the news, go for a walk and enjoy the vitamin D. Focus on enjoying your activities and we will focus on handling your money.
April showers bring May flowers. My daughter and her husband are in Amsterdam and checking out the tulips, WOW! That’s what I wish for your gardens, your investments and your life- a vast sea of incredible color.
See you soon