Market Update – Returns vs Results

Market Update – Returns vs Results:

Market Update – Returns vs Results

In our Power Hour, during our market updates, we were talking about returns versus results.

Let’s a little bit more in depth with this.

The market continues to be volatile, which means losses in accounts. There’s a lot of questions right now on people minds about what do.

Not that long ago, someone just asked me why they should make any changes, isn’t everyone in the same boat? When comparing portfolios, often they are just a few percentage points different anyway.

Now, I am not saying that you should make changes and yes, we are all in the same rocky water, but we are not all in the same boat.

This is focusing on returns, just the numbers, but I think it often goes beyond that.

What most people are looking for when they come to us is not to beat the market all the time. Which is good, because in all honesty, no one is ever going to beat the market all the time.

They come to us because they want less risk, they want someone watching out for them, they want to know their lifestyle is protected.

Our goal is always to reduce risk, but even more importantly, it is to see results.

For example….

Managing your retirement income ensuring that it’s stable no matter what is going on in the markets.

Being tax efficient with accounts that aren’t in a retirement plan such as an IRA, it’s not just what you make but what you keep. There is no point to make great returns but the lose it all in taxes.

Keeping up with inflation so you don’t lose buying power over time.We can do these things because know your name, we know your situation, we know what’s going on – you’re a person, not just a number.

You see, most people are invested in pooled investments like mutual funds or ETFs (exchange traded funds). The people who are managing your investment don’t know your name, you’re a number. They have how many investors they have in the fund and you’re one of those investors. They don’t know your name, they don’t know your situation.

Another thing we can do if you have a stock or position you like and want to keep is manage around that for you.

We just had a recent review with someone who kept some positions he has had for a long time and we built a portfolio around that for him.Of course, the account is down for the year, however, the holdings that he had kept, were down over 30%, but some of the things we added and rotated in to balance out his portfolio and put take advantage of opportunities are actually up 30% for the year reducing the overall risk significantly, but more that that he didn’t give up gains in taxes either.

We didn’t just go sell everything right away because there was taxes that would be due if we did, but we worked to make changes in a tax efficient way.He’s not a number, he’s a person that has things going on in his life that created some opportunities to make some changes without even paying taxes. That’s results vs returns.Often individuals and even advisors pick funds or pick strategies based on a percent or two difference in returns.

But results are more than that…

Are you going to be able to be confident to get the income you need?

Is someone watching out for you and putting you in the best position to minimize risk and put you in the opportunity to gain?

Are your taxes being managed and are you keeping up with inflation?

Hopefully that helps you think about returns vs results in a new way.

If you have any questions, please reach out, we can talk about what’s going on in your portfolio, things that are good opportunities, things that are maybe the areas to change, and most importantly we, we’ll talk about what really matters to you is important.

You’re not a number, you’re a person, valuable, important person.

If you’d like to schedule a personal one-on-one call with Michelle, click HERE to access Michelle’s calendar and schedule a day and time that is convenient for you.

We serve clients in Mineral Point WI, Dodgeville WI, Platteville WI, Lancaster WI, Fennimore WI, Boscobel WI, Richland Center WI, Muscoda WI, Spring Green WI, Mazomanie WI, Sauk City WI, Middleton WI, Madison WI, Fitchburg WI, Verona WI, Mount Horeb WI, Barneveld WI, New Glarus WI, Monroe WI, Belleville WI, Oregon WI, Stoughton WI, Darlington WI, Cuba City WI, Hazel Green WI, Belmont WI, Dubuque IA, Freeport IL

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