4th Quarter 2022 Newsletter

Financial Planning In Times Of Uncertainty

In 2020, the word unprecedented was thrown around like confetti. It found its way into everything. Two years later, a different kind of ‘un’ rules our world—uncertainty. Big questions loom in the minds of a lot of investors and the answers have implications on their financial plans and their future. Has inflation peaked? Are we in a recession? Should I get out of the market? Is now the time to invest in lower cost stocks and bonds to time the market for a recovery?

The questions are hard to avoid because the reminders are everywhere, the grocery store, the gas pump, and at your favorite restaurant. Times of uncertainty can be emotionally charged times. That fact, coupled with the truth that the topic of money is already more emotionally charged than political debate at the Thanksgiving table, makes a recipe for impulse decisions. The anecdote to uncertainty is clarity and the path to clarity can be found in a comprehensive financial plan. I have often said that 80% of financial success is just the managing of emotions. A comprehensive financial plan, overseen by an objective financial advisor can help relieve the feelings of uncertainty around your financial future. While a financial advisor can’t predict the future, they can help you define what you want your financial future to look like and set a course to get you there. Where others may see uncertainty, a financial advisor will see opportunity.

Has the uncertainty of the recent months created opportunity for you? To find out perform this exercise—sit down and write down your financial goals. A lot has changed in the past two years and some of it has been good. The job market has allowed a lot of people to find new, meaningful work and to increase their income. How have the events of the last two years influenced your goals? I ask clients to write down their goals because it makes them real and the act of physically writing the goals helps cement them in your mind. With your goals in hand, try to discern how they have changed since 2020. If your goals are different and your situation is different, but your financial plan is the same, then it’s time to adjust! If you are feeling a sense of uncertainty, reach out to our office and let’s make sure your comprehensive financial plan is working on your behalf.

The Election And Your Portfolio

November’s midterm elections may provide some certainty for your investment portfolio. While this may seem counterintuitive, history has shown it to be true. From 1931 to present, the S&P 500 index has followed a similar pattern in midterm election years. Volatility is historically elevated and peaks in the months leading up to midterm elections.

In this period since 1931, gains tend to be muted or negative. But, since 1950, the average one-year return following a midterm election is 15.1%. That is more than double the return of the non-election years in the same period! In that 72-year period, post-election year returns have ranged from 3% to 34%. Plan for volatility up to and through the election but talk to your advisor about taking advantage of the rebound that history tells us is likely to happen!

Team Member Spotlight: Angie Whittenburg, Client Relationship Manager

What does your day-to-day look like in the office?

I have the privilege of communicating with clients. I process paperwork and do whatever I can to help around the office. There is variety to each day and variety is the spice of life! I also enjoy the daily interactions with the rest of the Anchor team.

What has surprised you the most about your time with Anchor Wealth?

I really appreciate the team atmosphere. Everyone is so kind and willing to help each other out however they can. I enjoy coming to work each day with the Anchor team, and I feel that this is a rarity today. I’m so thankful to be part of this team!

Do you have a particularly meaningful moment with a client you would be willing to share?

I have enjoyed every interaction with clients! I do my best to listen, and solve problems as quickly and efficiently as possible. I want the conversation to be helpful and uplifting. I find great satisfaction in being able to help whether it’s a small or large matter.

What is something that your coworkers would describe as “so you”?

Crazy plant lady. I enjoy plants and flowers, and we have a very kind vendor that comes periodically to the building. I may or may not be single-handedly keeping him in business!

Financial Peace University Classes Begin January 9

We are excited to be teaching Dave Ramsey’s Financial Peace University once again! Classes will be hosted in our Rockford office and enrollment is limited. FPU is great for individuals who are just starting their journey towards financial independence or for those who may just need a refresher course on good money habits.

Anchor Wealth Management is offering this class free of charge to the first 30 people who register for FPU.

Contact Chris DeSchepper to reserve your spot before the class fills up! Chris.Deschepper@anchorwm.com

Take Me Out To The Ball Game!

The Anchor team recently took in a South Beloit Sky Carp baseball game. A beautiful night at a beautiful ballpark. The story behind the Sky Carp name is as much fun as the team itself!