You’ve got this! It’s difficult to wrap our heads around what the world is experiencing right now and we all understand that the situation is fluid and ever-changing. However, with each passing day, we inch closer to a resolution . . . where new cases begin to decline and closer to a treatment or vaccine. We will get through this.

You, our clients, have the financial resources and wherewithal to withstand this economic downturn. Our greatest concern is for those most susceptible to the virus and our clients who operate small (and not so small) businesses, their employees and staff. We are here to be another expert resource as you seek to navigate the current business environment.

In the process of sheltering in place, we are discovering many pockets of joy and hope. Using Zoom to celebrate birthdays, Passover, and Easter with friends and family we haven’t seen in years. Taking leisurely walks around our neighborhoods and meeting people who we didn’t even know were our neighbors. We’ve found pleasure and meaning in routine activities that often get overlooked. Kelly’s son Jayden has discovered a talent for cooking. Thomas is working out with his kids. Ryan taught their dog Teddy how to skateboard. And Barry has been humbled by how many times his 13-year-old daughter can beat him at cards and board games. Whether we want to or not, we find ourselves alone with our thoughts and contemplating our priorities. We will get through this crisis and be better for it. That is the nature of humankind . . . to live, learn, and adapt.

Market Commentary & Outlook.

  • The longest running bull market in history ended days after its 11-year anniversary in mid-March.
  • As we all know, the economy and stock market move in cycles. The global pandemic marks the end of the current cycle and 2020 will go down as the Year of the Virus. That said, we expect the markets to behave like this from time to time. Global equity markets have experienced eight bear markets over the last 40 years, or one roughly every five years. Put simply, a significant market pullback was inevitable.
  • With the closing of this chapter, a new one will begin and we are confident that 2021 will be the Year of Recovery (and hopefully start much sooner than 2021). Although we do expect that global economies will contract over the next quarter or two, we believe that most will be in a position to rebound strongly later this year or early next year when the virus-related shock subsides and pent-up demand emerges.
  • For Barry Mendelson, CFP – Wealth Advisor & Managing Partner taking you through our quarterly update titled, Perspective, Patience, and a Plan click here. Our goal at ZRC is to keep you stable in the short-term and focused on the long-term. The key will be keeping you in a position to participate in the recovery. Not only the rebound in your business (if you are a business owner), but also a rebound in the markets. You’ve experienced the “risk,” now let’s make sure you participate in the “reward.” For more written commentary on the markets click here.

Your downturn survival plan. Now is exactly the right time to revisit your financial plan. The good news is, we are all spending less. Unfortunately, many of us are also earning less. Below are nine steps you can take to help shore-up your mental and financial well-being. ZRC is here to talk through these things and strategize with you.

  1. Check if you are eligible under the CARES Act for a stimulus check, Payroll Protection Program (PPP), or Economic Injury Disaster Loan (EIDL).
  2. Get organized. Review your estate plan, including your health care and advance directives. Clean out file cabinets and shred unnecessary documents.
  3. In your financial plan, revisit “Expectation & Concerns.” Access it here. We will then follow-up with you to discuss these further.
  4. Take inventory of what you have; Assets and Liabilities (debts). Review your savings plans (we almost always recommend maximizing your retirement savings first) and plans for paying down debts (especially high interest rate debts).
  5. For those with taxable brokerage accounts, ZRC will be employing tax-loss harvesting as a tax savings strategy.
  6. Skip your Required Minimum Distribution (RMD) this year. We are reaching out to clients where this may make sense as a tax-savings strategy.
  7. This may be the year for a Roth conversion. Roth conversions (converting a portion of your Traditional IRA or retirement plan assets to a Roth IRA) often make sense if you expect your tax rate in the future to be the same or higher than it is now. For clients that can skip their RMD this year or whose income has decreased, the conversion could make a lot of sense. However, this is a complex financial decision that can’t be undone. Like #5 above, we will be reaching out to those clients where this might make sense.
  8. Use www.schwab.com and the Schwab Mobile app to transfer money to/from your bank accounts, deposit checks, and get updates. To learn about all the services available to you from Charles Schwab & Co. as a client of ZRC click here.
  9. We recently launched a YouTube channel to give updates via video that you view and subscribe to here.
  10. You are not alone. All of us here at ZRC are readily accessible via phone, email, and Zoom video-conferencing. To watch a one minute tutorial on how to join a Zoom meeting click here.

Update on our new Wealth Management Platform. Despite everything that is going on and our increased attention to the markets, tax law changes, and reaching-out to clients, ZRC is proceeding as planned to roll-out our new Wealth Management Platform in the next few months. We look forward to introducing you to an easy and intuitive way to monitor your investments, including those held outside ZRC, and keep track of your net-worth and financial goals.

Annual ADV Disclosure Brochure and Privacy Policy. At the bottom of every page of our website www.zrcwm.com you will find links to our updated Form ADV and Privacy Policy. The Form ADV (also known as a “Disclosure Brochure”) is an important regulatory document we file with the United States Securities and Exchange Commission (SEC). As a Registered Investment Advisor, ZRC is required to update this document whenever there are material changes at the firm (and at least annually).

The brochure also provides important information about ZRC, its business practices, and the qualifications of those associated with the firm. We recommend you read it along with the Privacy Policy – and contact us if you have any questions. If you would like to receive a copy of our brochure, privacy policy, or code of ethics – please contact us.

One of the qualities that distinguishes ZRC Wealth Management from many other firms is that we are Fiduciaries. That means, the investments we make on your behalf and the advice we provide are always done so in your best interest … every time, all the time.

Wishing you and your loved ones all the best during these very challenging times,

Sources: The Vanguard Group, Inc., Morningstar, Inc., Dimensional Fund Advisors, JP Morgan, Inc., First Trust, Blackrock, Inc., and Buckingham Strategic Partners.

All investing is subject to risk, including the possible loss of the money you invest. Past performance is no guarantee of future returns. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.

Sources: The Vanguard Group, Inc., Morningstar, Inc., Dimensional Fund Advisors, JP Morgan, Inc., First Trust, Blackrock, Inc., and Buckingham Strategic Partners.

All investing is subject to risk, including the possible loss of the money you invest. Past performance is no guarantee of future returns. Diversification does not ensure a profit or protect against a loss in a declining market. There is no guarantee that any particular asset allocation or mix of funds will meet your investment objectives or provide you with a given level of income. The performance of an index is not an exact representation of any particular investment, as you cannot invest directly in an index.