October 13, 2008


REST ASSURED, THIS TOO SHALL PASS

I have spoken to many of you who are all feeling completely shell shocked as you discovered that your retirements and savings has lost a lot of money. Emotionally there aren't enough words to even possibly try to take the shock, pain and fear away. What I can recommend is that you don't avoid it. Pay attention to your investements and work with your financial advisors to implement a plan that you can live with. Join Carol and I on Wed. October 29th (see under events below) where you will have the opportunity to share, ask questions and learn emotional and practical tools to carry you through this new time. In the mean time, I spoke with Carol, CPA Financial Planner for some words of advice. She says, "if you can, stay the course. You can not time the market. If the money is for cash reserves for purchasing a home or you are older and very close to retiring then you may need to constuct another plan. But if it is for your retirement and you have many years to go then stay the course. The market needs to work out it's excess and if you can handle it then stay the course." We both believe that this is simply part of the universe's way to begin the transformation process to us living from truth and our core instead of from our apperances and our minds. Before growth, there is a period of pain. Rest assured that this too shall pass.


She offered this excerpt from Genworth Financial's Wealth Management Weekly Bulletin:

"History suggests that the best option following a steep market decline is to stay the course. The markets eventually rebound and emotional responses to short-term upheavals can derail careful, rational planning.

Nonetheless, anxiety over the scale of the current decline has left many investors less willing to stay the course and wait for recovery. Many are considering foregoing their investment plans in exchange for the presumed peace of mind of a more conservative investment solution. This response is understandable and needs to be acknowledged. It is also possible that your clients' risk tolerance and goals may have evolved and that new planning is warranted.

The options to consider are:
Staying the course
Considering reduced risk levels within their current solution
Shifting to new strategies.

Why to stay the course

Consider this table. The left-hand column lists the end-date for market declines (as measured by the S&P 500 Index) against the end-date for their related economic recession. With the notable exception of the 2000 – 2002 period, when the 9/11 Attacks deepened and extended the bear market, stocks began to recover well before the economy:

Market Decline Ended Recession Ended

Sep 14, 1944 Oct 1945

Jun 13, 1949 Oct 1949

Sep 14, 1953 May 1954

Oct 22, 1957 Apr 1958

Oct 25, 1960 Feb 1961

May 26, 1970 Nov 1970

Oct 3, 1974 Mar 1975

Mar 27, 1980 July 1980

Aug 8, 1982 Nov 1982

Oct 11, 1990 Mar 1991

Oct 9, 2002 Nov 2001

Source: Standard & Poor's Equity Research Services


While history is only a guide, the lesson provided here is that retreating to the sidelines until after the general economy recovers has usually been a mistake."



We hope that this can provide some comfort and practical information for you. If you have any questions or are feeling alone please email me at emotionalmoney@gmail.com or call me at 718-350-6095. Or call your financial planner. But do not sit in the fear and let it take you over. Experience it and take an action that will help. Get the information on your accounts specifically and pick up the phone and get in conversation with someone that can listen and help. I hope to see or hear you at at least of the events on a Wednesday in October!




SAMARRA AM MANAGEMENT WEDNESDAY'S
Wednesday, October 15th, 7:30pm-10:30pm - Presidential Debate and Networking Event in New Brunswick
Register at www.njminoritybusiness.com $15
Leaving East Orange at 6pm. Join me for the ride.
Call me at 718-350-6095 or email me at emotionalmoney@gmail.com.

Wednesday, October 22nd, 7pm-8pm Free - Amanda Wiss: Professional Organizer
243 West 30th Street, 11th Floor
Must have at least 8-10 people in attendace. Please RSVP by Friday, Oct. 17th at emotionalmoney@gmail.com.

Wednesday, October 29th, 6pm-8pm $35.00
Inspiring & Empowering Your Financial Goddess w/ Carol Buchman,
CPA & Financial Planner
243 West 30th Street, 11th Floor


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Copyright 2008