3 Things 5-23

05/23/2022 Although MAS is a financial services company, not everything published herein will be about numbers or investing. But no matter the topic, we hope for three things: 1) That you find the time you spend engaged worthwhile. 2) That you’ll reach out to us for help in any of our areas of expertise if something we discuss creates an urging in you to do so. 3) That you’ll share this with somebody new each time you read it. Thing One Advice From A Long-Time Investor A few months ago, Andy Kessler, wrote the following in his column in the Wall Street Journal: “…Maybe stocks will revert to the mean, but what is normal anymore? I remember a Wall Street strategist who claimed stocks go from 25% undervalued to 75% overvalued. Sensible but wrong—the price is always right. Stocks end every trading day valued correctly. Yes, even in the past few weeks, with stocks rising and falling like a runaway roller coaster. Billions of shares traded balance millions of bullish and bearish thoughts to reflect consensus expectations. Or as Efficient Market Hypothesis believers say, “Asset prices reflect all known information”—emphasis on known. Correct compared with tomorrow? Heck no. In the long term, the consensus is always wrong. In the past 40 years, the S&P 500 has ended the trading day unchanged only 10 times. Inputs change. Expectations change. Macro information changes. Industries change, sometimes ever so slightly. Markets move up or down to reflect new information and investor moods and stuff out of left field. Bull markets climb a wall of worry and top out when there is nothing left to worry about and all the good news is baked in…Investing is a fashion. Any stock or crypto will work until it doesn’t.” Well, it seems we’ve now reached the point where some of it doesn’t work. Or have we? Frankly, that question isn’t answerable until either the company you’ve invested in goes out of business or you give up and sell. Before you do the latter, recall why you put your money up in the first place. If you had a soundly reasoned proposition with a long-term perspective, maybe you should stay the course, and maybe you shouldn't. If you were just out to make a fast buck, maybe you should stay the course, and maybe you shouldn't. The point is that in the first instance, you actually were investing and in the second you were likely gambling - even if that wasn't your intent. Both are okay but you should be careful to make the distinction upfront.

Thing Two (Note: This is the second installment in a series from Ethos on life insurance by age.) Why would you need life insurance in your 30s? If you’re like many adults in their 30s, you’re going through a whole lot of big life changes. Maybe you’re buying your first home, getting married, having kids, or starting a business. Whatever you’re going through as a 30-something, chances are there’s one thing you may not be thinking of: life insurance. Here are a few of the many potential life changes that can take place in your thirties—all of which are great reasons to consider life insurance now, not later. • You bought (or are saving to buy) a home: Purchasing a home is a huge achievement—and in many cases comes with a huge mortgage. Life insurance is a way to guarantee that your financial obligations will be covered in the event of your passing. Life insurance can protect your family by paying off the mortgage so they can continue to live in the home. • You’re having (or had) a child/children: Life insurance can ensure your children will be financially protected if the unthinkable occurs and you’re no longer around to care for them. A death benefit can help cover the costs of childcare, school tuition, and overall quality of life. • You have (or took on) significant debt: In addition to a mortgage, many people in their 30s have or take on significant debt, either through student loans, credit cards, small business loans, or some other major life change that requires financial assistance. A life insurance policy allows you to pay off any outstanding debt if something should happen to you. What kind of life insurance should you get in your 30s? If you’re in your 30s, term life insurance is usually your best bet. Term life insurance is affordable, straightforward, and can be tailored to provide coverage during the years you need it most. For example, if you’re a parent and your child will graduate from college in 18 years, you may want to consider a 20-year term policy. That way, you’ll know that no matter what happens, your dependents won’t be saddled with the costs of education in the event that they can no longer rely on your income. At the end of the day, life insurance is a vital part of your financial legacy, and opting to invest in it early is a wise step toward protecting your family and easing your mind. While a strong majority of Americans (82%) value leaving behind a strong financial legacy, a significant number of people (38%) lack confidence they will do so. By getting life insurance in your 30s, you can take action now to solidify your own financial future and the financial future of your family. If you're interested in a quick quote, click here or contact us.

Thing Three Just A Thought “Winning has a price. Leadership has a price. I pushed people when they didn’t wanna be pushed. I challenged people when they didn’t wanna be challenged. But I never asked them to do something I wasn’t willing to do myself.” - Michael Jordan