Plan Confidence Newsletter APRIL 2020
I am not going to beat around the bush. March was a brutal month for the stock markets. And it was unprecedented by any stretch of the imagination. I am assuming you are reading this as we all have to "shelter at home."
And with a fourteen year old daughter at home, I have taken on more responsibilities for the "online schooling" that is currently going on.
But a lot of good (in my humble opinion) is coming out of these unprecedented times. I have personally have spent more time cooking, working out and just "hanging out" by the pool with my family, than I ever would have. My daughter is begging to go back to school and many of my friends can't wait to get back to work.
And work life (and post secondary education) will be forever changed. Many people have discovered Zoom for the first time (we have used their competitor for years). Many businesses are realizing that their employees can be very productive from home. Many businesses have realized which customers and vendors are "with" them for the long haul and which ones have bailed.
Our new "normal" will be very different when we can get back to "normal."
We at Plan Confidence started out by offering 60 free days of advice for anyone that wanted it. However, due to some limitations regarding our "billing software" (Stripe, Inc). it created some confusion when they billed $0.00 but still sent an email stating that the invoice was processed. So, we decided that we would honor those that had that 60 days free and move our pricing down to $5 per month for everyone.
And we plan on keeping the $5 per month pricing indefinitely. We don't want cost to be a factor of people getting proper advice for their 401k plans. And we are asking that all of our current users, friends and supporters let everyone know about our new pricing. In that manner, we can spend a lot less on marketing to acquire a new user. Fingers crossed, so far so good.
So, if you are a current user of ours, you will be receiving the same great advice for $5 per month. So, please spend your monthly savings on a local business in your community!
And please do us a favor, let all of your friends and co-workers know that they too can have Plan Confidence for only $5.00 per month.
I hope you enjoy this month's newsletter (please share it with your friends).
Stay confident my friends. Make it a great April!
Sincerely,
Kevin T Clark, RF
Co-Founder & CEO
MARCH S&P 500 - STOCK MARKET:
So, the first quarter of 2020 was the exact opposite of 2019. We are no longer talking about "market rallies" and how high our new highs can be. The S&P 500 started the month at 3090 and ended the month at 2585. A monthly decline of over 13.5%.
March has made every country and every state decide that "all means necessary" will be required to stop the spread of the Coronavirus. And most governments shut down their economies. No more going out to eat or going to the movies or a live show. No more getting hair cuts or massages. "Shelter in place" is a term we are all familiar with, yet no one ever heard of the phrase prior to March 2020.
The stock markets sold off hard in March. And (possibly) may have bottomed out on March 23rd at 2237.
The markets usually are months ahead of the economy. The debate is no longer will we be in a recession, but how bad will the recession be? The unemployment numbers that are coming out are "fuzzy" at best. The "national number" published the first Friday of a new month is done by a phone survey. Yes, you read that correctly; a phone survey. The government "cold calls" people and asks if they are working. And then they extrapolate that data into an average. And this month's phone calls occurred before most states closed their economies. So, it didn't reflect the massive layoffs that occurred later in the month.
Every Thursday, we get the numbers of how many new people filed for unemployment the previous week. However, many states are weeks behind on approving applications for unemployment insurance. And even with the delay, 9.9 million Americans have successfully filed for unemployment insurance in the last two weeks! The "real" number is going to be way too many people who have lost their jobs during this pandemic.
Now the debate shall begin! What will the recover look like when the economy re-opens? Will we have a "V" shaped recovery, a "U" shaped or (my professional belief) a "W" shaped recovery?
Only time will tell.
MONTHLY QUIZ: Earth Day
This month we will be celebrating Earth Day (in your home this year of course)! So, I thought it would be fun to offer you an Earth Day Quiz.
CLICK HERE to take the quiz.
It only takes a few minutes and it will let you know the correct answers at the end. And I took it and got 8 out of 9 correct. (You can scroll up after you complete the quiz to see which ones you got wrong).
So I challenge you to take the quiz and see if you score higher. And be sure to email me or post on our Facebook page your score. Especially if you beat my score!
I'll give you Kudos on our Facebook Page and I'd love to hear about it!
Plan Confidence - March 2020
If you are using our ongoing, personalized advice service for your 401k / 403b / TSP plan, then you would have received an email and/or "push" notification (if you are using our app) on Monday, March 2nd.
Regardless if you are using our "Strategic" or "Semi-Tactical" models, you were instructed to move your "Future Contributions" to:
Diversified Emerging Markets
US Large Cap Growth
High Yield Bond
The exact funds to use, and percentages, will be shown when you log into your account through any browser or the app. And if your plan does not have a recommended category, then we will let you know the closest investment option available to you in your plan.
All of our clients using the Semi-Tactical models were instructed to move all of their stock holdings into cash on February 26th. As of the date of this writing, the monies should remain in cash as we monitor the charts to decide when you should be purchasing stocks again.
Do not hesitate to let us know if you have any questions about this service.
And please be sure to let your friends and family know that for $5 per month (less than a Venti Latte per month), they too can receive ongoing, personalized advice for their retirement plans!
In light of the recent selloff, they should buy you lunch for providing them our contact info!
JOKE OF THE MONTH:
Q: Did you hear about the two guys who stole a calendar?
A: They both got six months!
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