Client Newsletter 1Q20
Dear Ambassador Family,
I hope you enjoyed a Merry Christmas and a wonderful New Year!
In 2019, I saw great success stories in our client’s lives. I want to congratulate those who invested in themselves to confidently walk into the next chapter of their lives. We have families who:
- Retired successfully
- Paid off their debts
- Bought vacation homes with cash
- Bought and/or sold businesses
- Invested in and/or updated their Financial Plans
- Families who established plans a few years back saw the rewards of their sacrifices come to fruition
Congratulations on your accomplishments! I am so excited and thankful to be part of your financial journey and look forward to seeing what you will be rewarded within 2020.
An Incredible 2019 in the Rear-View Mirror
Last year started with a lot of uncertainty. But as the months went on, we saw the market recover from two 2018 corrections, and things started to look promising. A few things contributed to a good year:
- Tax cuts stimulated the economy
- Deregulation has made it easier for corporations to do business
- The Federal Reserve cut interest rates three times, making borrowing more affordable
We have a lot to be grateful and thankful for. That said, history follows a pattern. It would not surprise us to see some sort of correction after the strong year in 2019. Economic and political issues such as China trade, unrest in the Middle East and the upcoming November elections are potential risks.
Do you know where you stand?
Since the last great recession of 2008, we have had 10 years of a strong bull market, albeit with some temporary declines.
Let’s plan today so that when history repeats itself, you will have peace of mind, confidence, and freedom in knowing that you were proactively planning and taking care of your financial health.
Whether you are already in or are getting ready for retirement, ask yourself the following questions:
- Am I prepared for the unexpected?
- When the market corrects, how will that impact my income?
- How much can my assets go down before my lifestyle is impacted?
- Do I know where I stand?
If you’re not confident answering these questions, it’s time to review your plan.
What to look forward to in 2020.
- Towards the end of last December, Congress passed numerous new laws to take effect in 2020 (for instance, the SECURE Act that impacts IRA’s).
We will research and understand the implications of the new laws. Throughout the year, we will also have conversations with those of you who are part of the Financial Planning Club, to guide you through changes and steer you to success.
- As I’ve said repeatedly for the last two years, having a roadmap is the most important investment you can make in yourself to find peace of mind, confidence and freedom. Don’t short change yourself or get in the way of your own goals. Tomorrow comes faster than you think.
- I have been asked by Camas and Ridgefield Life magazines to write educational articles each month. If you live in the Ridgefield or the Camas area, I encourage you to look for our articles.
Here’s a quick glance at investment trends:
- US growth remains positive, but subdued.
- International growth is still weak, but stabilizing.
- Prices in many assets are high, but interest rates still remain low.
- Macro volatility is still a risk, though unlikely to derail the broader economic story in 2020. Politics (US elections, China trading, unrest in the Middle East) might offer more risk than economics (Fed already cut rates, and are unlikely to raise in the near term).
After a strong year in 2019, we would expect positive but more subdued returns this coming year. We are projecting to see a good balance of risk and return.
If you want more in-depth resources on these trends, please visit our website and read our investment newsletters from 2019.
As you set your New Year’s resolutions, I encourage you to be proactive with your financial planning. You can control your future, but it’s up to you to make it happen.
Now is the time to set new goals and dreams for the year. I’m here to cheer you on along the way.
Let’s make 2020 a great one!
Petr Burunov, CFP®
President / Wealth Strategist