As long as humankind has been investing, strategies have been bantered about regarding what to do in a down market. Financial advice literary careers have been launched, Hollywood movies have been made, fortunes have been gained and lost…all from postulating about what to do when the bears come knocking! Our next podcast discusses the most practical strategies about how to make it through the latest financial cyclone we are living through. There is a clear course to chart, and Ms. Katherine Vessenes, CFP®, RFC, Founder and President of MD Financial Advisors, is here to help us navigate.

About Ms. Vessenes:

Ms. Vessenes works with over 300 physicians and dentists from Hawaii to Cape Cod. Her firm uses a team of experts to provide comprehensive financial planning to help doctors build their wealth and protect their wealth while reducing taxes now and in the future. Katherine is a longtime advocate for ethics in the financial services industry; and has written three books on the subject of investment strategies. She has received many honors and awards including: numerous tributes from Medical Economics as a top advisor for doctors, multiple 5-Star Advisor Awards, honored as a Top Woman in Finance, in addition to being selected to be on the CFP® Board of Ethics. Katherine can be reached at: Katherine@mdfinancialadvisors.com or 952-388-6317. Her website: www.mdfinancialadvisors.com.

What to do in the down market?

1. Avoid timing of the market. The majority of your returns are explained by portfolio mix. If you leave in a down market you solidify your loses

2. Avoid stock-picking - lots of research to show this method does not work! Don’t be tempted.

3. Be sure your portfolio is diversified– stocks vs bonds, domestic vs global, etc.

4. Stay in the market – overall the US stock market has had many more wins than loses, if you leave now you may lose the run-ups and this can significantly impact overall portfolio value

5. Always go back to your financial plan and rebalance as needed.

6. Consider working longer, working part-time instead of retiring or doing a side gig

7. Tighten your retirement budget.