What started as a breeze at first is now a full blow. At first the Pandemic catalyzed many trends in place, speeding them up. Now political change is upon us. The comfort of what we thought we knew is gone replaced by greater unknowns. It may be better, may be worse, more than likely a mix. The Bull addresses politics and the markets in his most recent quarterly newsletter, Perspectives, in the “Talk with Us” section. This is published on the riverplacecapital.com website.
The shift in market leadership from growth to value is now in full swing. It started last fall, slowly at first. It has gained momentum, especially now with a new Presidential administration promising more fiscal support to the coronavirus-stricken economy. Additionally, greater infrastructure spending, social programs in healthcare, and greater protection for the environment are going to be initiatives. How much actually gets implemented is unknowable, but the intent has been clearly stated.
Investors, always wanting to get in front of profitable trends, are moving their holdings toward businesses that will benefit from this. Many of these are “old line” companies that are categorized as “value”. In addition to being in front of a foreseeable trend, many of these stocks are cheap, especially in relation to the previously fully exploited growth leaders. The Bull and his partners began this shift last fall; at first modestly, now more emphatically. We expect good results, stay steady my friends.
The Lonely Bull
The Importance of a Financial Plan
How You Can Get One At No Cost
This past year has been one for the history books, and one key takeaway is the importance of having a financial plan. No one knows when the next crisis, recession, or unexpected event may arise. Did you know that according to Charles Schwab, only 25% of Americans have a financial plan? We have plans for so many things in our lives, whether it’s planning for something as simple as your day, planning your next vacation, or even your evacuation in case of a threat to your home. Since we plan for many things in our lives, why do so many Americans not have a financial plan? Is a financial plan even necessary?
This past year is great proof that you always need a financial plan in place to help you navigate through uncertainty. No one saw the financial crisis caused by COVID-19 coming, and few were truly prepared for the unprecedented measures we took to combat the virus. Before Covid, our economy was doing excellent; unemployment was at historically low levels, wages were increasing, and overall optimism about the economy was extremely high. Those are certainly not necessarily the times during which most people make it a priority to create a financial plan or evaluate their financial position. However, it is exactly when things are good that you should create your financial plan and prepare your savings plan for the future.
There are several reasons why many Americans do not have a financial plan. Those include the lack of education we receive around money in general and the belief that financial plans are out of reach for most everyday Americans. We are taught many things in school, however, how to handle money and personal finance is not one of them. Most of what we learn we gain from observations or conversations with our parents or extrapolate from peer groups. Often, these can cause you to believe your money is controlling you, not the other way around. Still, many Americans navigate throughout life without a financial plan or advisor. This may be because they assume that only wealthy individuals can benefit from a plan or afford a financial advisor. This is simply not true. What many Americans miss is that your financial advisor can be much more than just your investment manager. Just as you have a realtor to guide you through a home purchase and an accountant to keep you current on tax codes, you should have a financial professional in your life to help guide and direct you in planning for all things financial. A good financial advisor will always start by developing a financial plan that aligns with your goals, risk tolerance, and is specific to your unique situation.
Another deterrent that keeps people from forming their financial plan is that it can be a source of stress, fear, or worry. Less than half of Americans even have a household budget, and roughly one-third have nothing saved for retirement. However, when working with an advisor to put a plan together, you can take control of your money. A plan sets an attainable goal for you to reach with a reward at the end! We work hard for every dollar we earn, so why not allow our money to work hard for us? Financial planning puts you in the driver’s seat when it comes to your money. You are making the decisions, and you control your financial future. It is a freeing feeling to have that plan in place.
Once you have your plan in place, please understand you are not done! Your plan needs to remain fluid, and you will want to update your plan as your situation changes. Whether it is a child going to college, an unexpected expense, or retirement itself, your plan needs to be updated to accurately reflect your current situation. At Riverplace Capital we provide free financial planning for all existing clients. In celebration of the new year, we are excited to announce that we offer free planning ($1,500 value) to anyone who has read this article and tells us they read about it here. To find out how to get your unique plan, call us at (904) 346-3460, reach us via email at [email protected], or text (904) 614-8000.
Whether you decide to work with Riverplace Capital or another financial advisor, getting started with a plan is the first step towards achieving your financial goals. We encourage you to take the first step towards beginning your successful financial future in 2021!
By Scott Wohlers
VP, Riverplace Capital
Who we are
Founded in 1998, Riverplace Capital is a private wealth management firm located in Jacksonville, Florida. We offer a full array of financial resources and specialties in Investment Management, Business Ownership, Real Estate, and Family Office services. A fiduciary Registered Investment Advisory firm, we provide discreet, personalized, and individually tailored financial services to long-term investors. Riverplace Capital Money Managers deliver top performance through financial planning and disciplined investing. We work together with you to enhance your investment results and income, manage your risk, and provide tax protection.
The Lonely Bull moniker reflects our independence of thought and unique hands-on approach to investing. Unlike most firms, you work directly with the people managing your money, not an intermediary. If you want to work with a firm that approaches investment differently from the others, Talk with Us!
In the News
By Peter E. Bower
President, CEO and founder
By Mark W. Ross
By Scott Wohlers
Vice President, Riverplace Capital
Millenials- Get your free Investment Guide today
Are you a millennial trying to navigate through all the rhetoric and challenges of investing? Riverplace Capital millennial and professional investor Scott Wohlers has some best practices, tips, and simple ideas to help you either get started or manage where you are!
Why Choose Riverplace Capital?
We select individual securities that are more tax efficient than many financial products, planing the timing for buying and selling to best meet your tax needs.