3 Things 6-9-25

 Thing One

Timing Isn’t Everything, Staying The Course Is

When the stock market goes down it means people and institutions are selling out of their positions. Such has been the case on many days during the last few months. The experts have categorized much of this activity as panic selling, which is generally based on some extraordinary news item. The current headline grabber and selloff instigator is the is the regional banking crisis. Investors have not liked most of what they’ve read.

Those who sell on the negative news often feel good about “getting out” early as they watch the market fall further, but there is data that says that might not be the best approach.  In fact, one study by Bank of America pointed out that investors who get out have a tendency to stay out too long and miss the best days. The study does allow that they can still do okay with their timing approach though.  It even goes to the extreme to point this out by showing that since 1930, an investor who missed the 10 best days of every decade would still have had a return of 28%.  Not bad, right?  Not at all until compared with the return of an investor who resisted the urge to sell and stayed in from 1930 until the present day, with all the recessions, wars, and crises - financial and otherwise.  His return over that same period would’ve been 17,215%.  That is not a typo.

Get invested and stay invested.  If you need help or know people who need help, let us know.

Thing Two

Is Your Employer-Provided Coverage Enough?

Spoiler: It’s probably not enough

Employer-sponsored policies typically offer coverage that is about 1-2X your annual salary. However, financial experts recommend having coverage that is about 10X your salary. That can result in a large gap in protection if you’re solely relying on your policy through work.

Think about all of your family’s expenses (mortgage payments, childcare, college tuition, living expenses), and ask yourself: Would my coverage through work be enough to take care of my family if I passed away? If not, you may want to consider buying a policy to supplement the coverage you have through work.

And remember that whether you change jobs, retire, or are laid off, when you leave the company, you may have the option to take your employer-sponsored policy with you. However, you’ll likely lose the pricing benefits provided by the employer, leaving you overpaying for insufficient coverage. That’s why in most cases, it’s advantageous to forget your employer-sponsored policy and apply for individual coverage.

Thing Three

Just A Thought  

"Worrying does not take away tomorrow's trouble, it takes away today's peace." - Randy Armstrong