SLEEP DISORDER

In the middle of an epidemic, yes I could repeat the mantra on every newscast in America. I won’t waste time doing that. But I do want to “ring the bell” on steps you should consider right now regarding your money and your property.

I had the pleasure this week to help a long term client who openly admitted she didn’t understand the mutual funds she has owned for many years. Luckily, they were picked for her by another financial advisor and he picked them well. I got a call when these funds lost a big chunk of money when the equity markets dropped a few months ago. Worrying about the fear to have to go get a job after many years of retirement scared her to death.

Since she had held her mutual funds long term, I told her it might be best to wait and see if some loss could be recovered. We waited and luckily, the market returned most of her gains. This week, she had recovered from most of the unrealized loss’s and because of her fears of another crash coming and inability to sleep well at night, I assisted today helping her get into cash (money market) and out of the stock market.

She had a sleep disorder for months over the loss’s that scared her so much. It wasn’t sleep apnea, or a loud neighbor’s dog, but the fear she would wake up and see another big drop in her equity accounts. And run out of retirement money before long. I can attest, her financial position does not allow for any more big loss’s. Looking at assets, income producing assets, retirement accounts and life expectancy, the risk of staying in equity investments that she did not understand was too high.

I first suggested considering selling 1/2 of her equity accounts and transferring them to a product that had guarantees on her principal. She liked that idea but did not fully grasp how it would work. But when it came down to a face to face chat this week, it was apparent she never ever wanted to be scared like she was when a big chunk of money had disappeared. (on paper) SHE WANTED OUT!

I also felt it was time to review the few areas I don’t take care of for her in her finances. Upon examination of her insurance plans, I found her insurance policies for auto and homeowners were either overpriced or under protected in case of a major loss. In fact her homeowners policy replacement cost could build a townhouse at best for her if her home burned down. But not a nice beautiful home in a retirement community like she has now.

We are quoting with another carrier and adding an umbrella liability policy as well for quotes. The key in your financial planning is to be sure you insure all risks possible to protect your net worth. This includes medical insurance as well as long term care (nursing home) protection. And proper limits of liability insurance.

As I have done for so many families and individuals for 45 years, I am assisting her in “recasting” her money accounts into investments that meet her investment risk factor (she is a 0 for risk on a scale of 1-5 according to my client). Our new investment financial plan will be completed in a few weeks or less. Rethinking your protection mechanisms, recasting your investment accounts for more safety in a year proven to be like no other (and it is only 1/2 way through) makes a lot of sense.

The best part of all, my client has solved her sleep disorder by using FSI’s free consulting services. Yes, I get paid on some insurance products as an insurance broker. But they are GREAT products from GREAT companies. Not poorly rated company and products so many insurance agents push on you because they pay higher commissions.

Call me to help you solve any sleep disorders caused by having too much money in the stock market. DON’T PROCRASTINATE!!!

M.D. Anderson, Notary, AZCLDP, Realtor, Accountant, Insurance Broker