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Protecting Your Wealth During Market Turbulence

Protecting Your Wealth During Market Turbulence

May 07, 2020
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The coronavirus pandemic has turned our world upside down. We have been helping our clients navigate challenging situations since Zephyrus Financial Services was founded. During this time, our core values have not shifted. Our business model is built on an intentionally different approach to planning and investing. We focus on a goal-oriented process, create customized financial roadmaps, build personal relationships and continue to educate clients to help them reach their retirement dreams.

 

We understand volatility and uncertainty on Wall Street is causing a lot of concern. But financial markets fluctuate, and we plan for times like this. We tell our clients to think about the financial planning we’ve already done. The good times and challenging times are worked into our analysis. We run different economic and market scenarios to help put our clients in the best possible situation focusing on their long-term goals.

 

Every financial roadmap we create goes through a series of shock tests: Great Recession loss, inflation, Social Security cuts, low returns, dying early, living longer, health care and long-term care costs and cuts to pensions. We test how all these events, and even combinations of these events, affect your roadmap outcome. We use these shock tests to gauge investment risk and determine risk tolerance if the markets were to do something drastic.

 

Another way we can test a financial roadmap is by looking back at a previous crisis. For example, we can run a simulation based on what happened during the tech bubble burst from 1999-2000 or the Great Recession in 2008. Using a combination of a roadmap and investment analysis software, we can focus on a particular sector and how it might weather a particular crisis.

 

* Past performance is not a guarantee of future results

 

 

Along with the shock test, we determine your individual risk tolerance when your money is put through different scenarios. Each of us will have a very different reaction to what is going on with the markets when we see how it actually affects our money in dollars and cents. Our risk tolerance also changes with age and goals. It might be hard to determine how you might actually feel, but with this information, we’re able to put together a timeline to help you reach your retirement goals. Testing your roadmap for potential trouble spots is not a one-time thing. We make sure this is done annually with our clients.

 

Even though it might seem like poor timing, our clients are still happily retiring. Our tests help to show it can be achieved and also provide a sense of confidence that we will weather this storm with them.

 

COVID-19 recommendations mean we’re conducting business a little bit different for now, but we want to assure our clients we are here to support them and their families. Our meetings are no longer in person, but staying connected with our clients is a priority. We are still available by phone, email and video conferencing. If you would like to get in touch with Tim or Amanda, click here. We are all in this together.