Just last month, we were marveling at how quickly the coronavirus had arisen. As we continue to reflect on unfolding news, it now somehow feels as if COVID-19 has been a part of our lives forever. There’s even a well-known behavioral bias for this. It’s called recency.
As an advisor, one of my greatest roles is to help investors combat recency, and replace it with a longer, clearer view. This means ensuring you have a plan in place. It means maintaining a source for dependable income for any hard times to come. It means stress-testing your plans as realistically as possible before the next bear market roars to life.
When the inevitable bears arrive, as they periodically do, we want to eliminate the usual anxieties. We can then make the best of it by rebalancing back to plan, harvesting appropriate tax losses, seeking opportunities for Roth IRA conversions, and otherwise staying the course.
Wealth Advisor & Founder