The longest bull market streak in history came to an end on March 12, 2020. But what comes next? As painful as the uncertainty might feel at the moment, it may not be the threat to your financial success as it may seem. In fact, there are prudent and proactive steps you can take that can provide the opportunity to improve long-term returns.
The Matthews Group strives to help you cut through the many misconceptions and lay a foundation designed to help protect you against market downturns. To us, sustaining family wealth is as much about preservation and intentionality as it is about your unique vision for your life. From long-term financial planning to results-driven portfolio management, we deliver guidance and solutions that reflect your vision and values.
We believe that all investors should have a comprehensive plan that is updated regularly, drives their investment strategy, and minimizes income and estate taxes. A plan that is aligned with your goals can help take some of the emotion out of investing and keep pace with your risk tolerance as the markets continue to shift. In these unprecedented times, here are five additional tips to help support your long-term financial goals:
1. Seize planning opportunities in uncertain times
Certain planning strategies may be timely in our current market environment. For example, consider wealth transfer strategies when valuations are low, or intra-family loans when interest rates are down. Review your estate planning documents to ensure they reflect your current wishes and include a living will, as well as durable and healthcare powers of attorney.
2. Hold investments that zig when others zag
A well-diversified portfolio includes a variety of asset classes that don’t always move together. Diversify across traditional asset classes, but also consider whether alternative investments, like hedge funds or structured notes, are appropriate. The idea is to stick with your asset allocation through the inevitable stock market ups and downs—reassessing and rebalancing periodically.
3. Understand the impact of your family dynamics
Every family is unique. Proper planning for your estate and legacy requires a two-pronged approach: having the right plan in place and clear communication with family members. Acknowledging your family dynamics, from blended families to sibling rivalries to conflicting goals, is an essential step in understanding the financial, psychological and emotional factors that are needed for clear communication about your estate plan.
4. Prepare the next generation to be stewards of family wealth
Will the next generation sustain—or drain—your family wealth? Preparing heirs to be stewards of family wealth, rather than dependents on it, requires building unity and designing appropriate governance and succession strategies. Navigating conflicts, values and complex family dynamics are best addressed through well-structured family meeting process.
5. Align your philanthropic goals with the current market environment
Market uncertainty shouldn't mean you abandon your philanthropic intentions. In fact, today the need—and opportunity—may be greatest. There are philanthropy strategies that fit every goal, asset type or tax consideration. You may want donate money outright or appreciated stock, which avoids capital gains. You can place assets in donor advised funds or create a private family foundation. Consider the right strategy at the right time for your family's goals.
You don't have to face these turbulent markets alone. Our team's deep experience guiding our clients through market downturns, corrections and recovery has given us the insights that can help you meet your challenges, preserve lasting wealth and seize opportunity.
Let's start the conversation.
The Matthews Group
UBS Financial Services Inc.
Private Wealth Management
601 108th Avenue NE, Suite 2000
Bellevue, WA 98004
425-451-2350
This article is for informational purposes only and should not be relied upon as investment advice or the basis for making any investment decisions
Neither UBS Financial Services Inc. nor any of its employees provide tax or legal advice. You should consult with your personal tax or legal advisor regarding your personal circumstances.
Asset allocation and diversification strategies do not guarantee profit and may not protect against loss.
Private Wealth Management is a division within UBS Financial Services Inc.
As a firm providing wealth management services to clients, UBS Financial Services Inc. offers investment advisory services in its capacity as an SEC-registered investment adviser and brokerage services in its capacity as an SEC-registered broker-dealer. Investment advisory services and brokerage services are separate and distinct, differ in material ways and are governed by different laws and separate arrangements. It is important that clients understand the ways in which we conduct business, that they carefully read the agreements and disclosures that we provide to them about the products or services we offer. For more information, please review the PDF document at ubs.com/workingwithus.© UBS 2020. All rights reserved. The key symbol and UBS are among the registered and unregistered trademarks of UBS. UBS Financial Services Inc. is a subsidiary of UBS AG. Member FINRA/SIPC. IS2003510