History

Our president and CEO, Greg Powell has been in the business for 39 years. Over that time period, a lot has happened in the markets to include the Iran hostage crisis in 1981 where banks closed and mortgage rates were 19%. In 1987, the stock market crashed. In 1990-1991, Saddam Hussein invaded Kuwait. He witnessed the S&L bailout crisis. Then in 2000, when we had just gotten out of the Asian contagion, we went into Y2K. In 2000, a new president was elected through “hanging chads”. Shortly after is when 9/11 occurred in 2001. In the history of Fi Plan Partners, we experienced the financial crisis of 2008. March 9th, just a few days ago, was the 11th anniversary of when the market hit rock bottom as a result of the 2008 crisis and the start of the climb back to what would be the longest bull market that we’ve seen in history. The reason the recap of the past is so important is that with the coronavirus and the activity in the market today, there’s obviously panic out there but the market has been through volatile times like this before. Fi Plan Partners is working hard to keep you updated and informed through it all. 

Planning is Important

When it comes to your Financial Blueprint and things appear to be violent and the market is going down, what’s the best thing to think about? First, we know that these things are going to happen in the economy. It’s just part of it. However, things like this are built into all of our financial plans. When we build your Financial Blueprint, we primarily focus on your dreams and goals and this included planning for worst-case scenarios. We know the market will have times like these, but we look more into what you want to achieve in your life and not just the “right now”. We build portfolios so that those dreams and goals, even in these rough times because we know that we’re going to go through it at some point, are still attainable. We focus more on how to create your portfolios to reach your goals and not so much on what’s going on in the day to day markets. If you’re on track to achieve your goals then the noise released in the media, the short-term blips in the economy and the overly emotional responses prove to be just that, noise. We can guarantee that we’ve planned for it and we’re ready for it. This is one of the many reasons that we have a constant dialogue with our clients. Every year we update plans and we look at how our client’s portfolios are performing against their individual plans. We want to make sure that they’re on track. Having a plan in place allows you to take a longer-term view so that you can navigate the short-term blips like now, with confidence.

Focus

Since 1950 there have been 20 pullbacks of 15% in the S&P 500. Of those 20, 12 was because of a recession. If we are in a recession environment, and we’re not saying we are, but even in the worst case where there is a recession, the average pullback is 25%. However, 250 days later, which isn’t that long of a time, the market was up an average of 38%. So, over the short term, yes these things occur but if you have the confidence with your plan in place, you can take a look at the long-term view and see that these things typically pass which will provide comfort in the short-term. One thing we know for sure is that we can’t control the markets. We can, however, build portfolios to insulate our clients from the effects of the markets. There’s a lot of things within a Financial Blueprint that we can control such as expenses, other assets that aren’t tied to the market, when you should retire, looking at tax the consequences of different moves we make, and much more. When the markets behave the way they’re doing right now, there are several things we can take advantage of from a planning perspective. Also, another thing we can control is the way we react to it. Our definition of anxieties here at Fi Plan Partners is that anxieties are those events that nine times out of ten will never occur and once you have the knowledge, it gives you the confidence to confront the fear. We believe that there’s no reason for anyone to be in a panic. Focus on your Financial Blueprint and your plan to stay on track for your goals. We’re constantly looking at research and always have somebody watching the portfolios. We are focused on the data and finding out what information truly will impact the portfolios and what information is just hype. Stay tuned for more updates as events continue to unfold.

Stay in Contact

When these kinds of events happen, we clear our calendars so that we can be available to talk to you. Please call or email us with any questions or concerns. One thing you need to know about our team is that when somebody is on the phone talking to clients, there’s always another person following the markets. That’s one of the great things about working with Fi Plan Partners. We want to make sure we are here for our clients in all aspects.

 

Greg Powell, CIMA®
President and CEO
Wealth Consultant
Email Greg Powell here

Bobby Norman, CFP®, AIF®
Managing Director
Wealth Consultant
Email Bobby Norman here

Trey Booth, CFA®, AIF®
Senior Vice President
Wealth Consultant
Email Trey Booth here

Jay McGowan, CFP®, CPA, PFS
Senior Vice President
Director of Financial Planning
Email Jay McGowan Here

 

 

Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.

Securities and advisory services offered through LPL Financial, Member FINRA/SIPC and a registered investment advisor.

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