March 18, 2020

To Clients, Friends and Partners of Arsenal:

Hoping this communication reaches everyone safe and healthy.

We will operate on the assumption that everyone is keeping up to date with COVID-19 related updates.  Let’s use our brief digital moment together to think about what you can do during these periods of economic instability and stock & bond market volatility.

What Can You Do Now?

Seek to Refinance Debts: 

• Mortgage Refinance: Rates on mortgages are at all-time lows, and home values and incomes still at all-time highs.  Take Action NOW.
• Home Equity Lines of Credit in general have seen rates fall by 1.50% in the last 3 weeks. Review your current interest rate
• You may be able to refinance high interest rate car loans and personal loans

Investing:

• For 22 years I have recommended to investors this boring foundational principal: “Align The Time Frame of Your Investment, with the Time Frame of Your Goal”. Retirement investing is generally a long-term goal – even for those in retirement.  Emergency money should not be invested in a basket of stocks.
• The US Stock Market is still full of many healthy companies who will return to visible profitability once we move through this chapter in the markets. Get your shopping list ready – and be patient!
• If you are going to put new money to work, re-read the two lines above…and be patient. “Dollar Cost Average” instead of investing all at once.
• Review your positions in taxable accounts and determine if it makes sense to “harvest” tax losses.
• Re-balance. Re-balance.

Retirement planning:  Stick To The Program

• Re-assess your Retirement Goals & projected dates of retirement to be sure your Plan is still in-tact.
• Continue 401k and Retirement plan contributions to the best of your abilities. This next chapter in the market may represent your “buy-low” opportunities.
• Talk to your advisor about a Roth Conversion and if it makes sense for you.

Protection Planning

• Not to be morbid – but please review Your estate plan. If you have put this line item off for quite some time, please call your local Estate Planner.
• Likewise – review your life insurance and be sure your beneficiaries are correct.

We continue to be available to our clients, friends and partners during these times of stress and invite you to schedule additional phone calls as needed to review both your “Financial Planning To-Do List”, your investment portfolio reviews or to talk through risks and opportunities.

Please stay safe and contact us today at 781-335-9100.

Best,

Doug Orifice