May 4, 2020
We have now been working from home since March 16, 2020. At the risk of sounding like a broken record, I have to say “Darn we are so lucky!”
There are currently 22 million people unemployed.
7.5 million small businesses are at risk of closing permanently.
Over 1 million confirmed cases of Coronavirus in the U.S.
Things could be so much worse.
We are busier than ever. Video chat makes it possible to reach out and touch someone easily and more often. As I am sure you know most of us use a small percentage of the capabilities of our phones, laptops, and software. Every day I discover some new tools I can use to accomplish more and manage portfolios more effectively.
In many ways, I liken money management to tending a garden. There is a constant need to pull weeds, add water and fertilizer, mow the lawn, trim branches, and plant new trees. With a garden, you can go outside and see for yourself what needs to be done and then do it.
With a portfolio, some of the beneficial maintenance steps are not so obvious to the naked eye. It takes software and analysis to identify the weeds and branches to be cut and where to add water and fertilizer. During the past six weeks, I have had the time to better learn how to use our existing digital capabilities. The result is that we can find opportunities to rebalance, harvest losses, and manage models faster and with less grunt work.
Over time this will lead to better risk-adjusted returns.
Recently there has been some noise in the municipal bond market about potential state bankruptcies. We have discussed this at length with our bond managers and the conclusion is that this is unlikely. We have undertaken a complete review of all of our bond holdings to find any “weak sisters.” So far we have not. Here is a message from our bond manager. Please read it, I think it will assuage your concerns.
Paul and I recently participated in our first podcast, ‘Generational Estate and Wealth Transfer Strategies During the Crisis.’ If you would like, please listen:
When we first sheltered at home I was worried I would gain weight. The good news……I am down by five pounds. Too busy working to eat! My strength program is going well, I am getting stronger in all of my lifts. Also jumping rope, kettlebelling, and hitting the punching bag, all at home. Just before the crisis, we rescued a dog, some kind of hound mix. He is a lot of fun and keeps us busy. I have heard from friends that there are no dogs to rescue anywhere. We found him just in time.
I practice the drums EVERY day. This is how I make the transition from work to home. We have a saying “you can’t think and play music at the same time.” So I stop thinking about “tending my garden” and just settle into the groove. By the time I am done, I am ready to be husband and father.
Till next week, stay safe.
PS: Book number three is finished and on it’s way to the publisher. Stay tuned!
CEO, CFP® Wealth Preservation Solutions
Personal Family Office / 360 Wealth Management