All tagged San Luis Obispo Financial Planner
What does your dream vacation look like?
Are you picturing the white sandy beaches of a tropical island?
Maybe lush wilderness, ancient ruins, or a glittering city?
If you’re like many folks, you want luxury and a longer stay for your next vacation.1
You may even want to connect, heal, or finally experience that once-in-a-lifetime adventure.2
Those are just some of the most popular trends in travel these days.
Markets bucked and sold off again. (1)
Should we be worried?
Not necessarily. These things happen pretty regularly, especially when headlines are negative.
In fact, you might recall that we kicked off 2022 with a big drop. (2)
So, let’s talk about what’s behind the latest wild market ride.
(Scroll to the end if you want to skip right to the reassurance.)
What led to the selloff?
SAN LUIS OBISPO, CA, 3/31/22 – Eric Maldonado, Owner of Aquila Wealth Advisors, LLC has earned the Certificate in Blockchain and Digital AssetsSM from the Digital Assets Council of Financial Professionals. He joins an exclusive group of financial professionals with the credentials to serve investors who are curious about bitcoin, blockchain, and digital assets.
First, what is a bear market? It’s when stocks have dropped more than 20% from their last peak.
So yes, in some sectors, we are in a bear market territory.(1)
But, as of this writing, the broader S&P 500 has not entered a bear market. It’s possible it will, especially in this environment, but it hasn’t yet.
So, let’s remember goals-based investors with a financial plan are not day traders.
We’re long-term investors, and the day-to-day and week-to-week gyrations aren’t as important as what happens over years. What’s more important are the values, objectives, and time frames that have been laid out in your financial plan, in advance. If the financial plan doesn’t change, or your personal goals don’t change, then the investments don’t change.
Here’s a quick chart showing just how common big market drops are:
Bull Market and Bear Market Quiz!
For a bear market to begin, do stock prices have to fall by 10%, 15%, or 20% from a recent high?
Do you know the answer off the top of your head?
If you said 20%, you’re right!
More spending = higher taxes?
That seems likely with a $2 trillion American Jobs Plan (that could eventually cost trillions more) on the table to bolster America’s crumbling infrastructure and invest in R&D.(1)
What could those tax hikes look like? Let’s consider the possibilities.
Eric Maldonado, CFP®, MBA
Aquila Wealth Advisors | (805)250-4552 | info@aquilawealth.com
872 Higuera Street, San Luis Obispo, CA 93401
www.aquilawealth.com
Here's some good news I'd like to pass along for this week:
A New Jersey hospital once described as a “war zone” now has zero COVID-19 patients.
17 COVID-19 vaccines are in human trials. At least one may be ready for approval by the end of 2020.
250 million trees were recently planted in northern India.
Uplifting stories are out there; I just thought I'd pass a few along.
Full Time.com article: https://time.com/nextadvisor/banking/savings/how-much-should-you-have-in-emergency-savings/
Eric Maldonado, CFP, a financial advisor at Aquila Wealth Advisors in San Luis Obispo, California, also recommends an emergency fund buffer of six to 12 month of expenses.
“This becomes your stress valve,” he says. “You want to be able to make big life decisions based on what you value most. If you don’t have enough cash on hand, you end up having to make hasty decisions due to time constraints.”
And ultimately, that’s what your emergency is built for: peace of mind.
