I remember it well. It was October 2007, and the stock market was at a high point. By the time we had reached March of 2009 the market had lost 52.9% of its value. We were losing close to $750,000 in jobs a month. There was legitimate panic in families of all shapes and sizes, including the so called 1% families. I know this to be true because as a CPA and financial advisor, I have chosen my life’s work to consult with families each and every day, and I found myself in the trenches like never before.
Most of my clients are hearty Northeasterners living in New York and New England, in addition to the locals who have escaped to points further south. Many of the 35–55 year olds I work with are caring for elderly parents and raising dependent children. I see a cross section of educated professionals who work in many fields including technology, healthcare, education, and small business entrepreneurship. I have many clients like the electrician or the plumber next door who are raising families and paying their bills and investing for the long term.
Client contact was at an all-time high during the winter of 2008-2009.
“I am going to cash all my accounts in and put the money in my safe” was a common comment.
“I am never buying the stock market again” was another.
“How am I ever going to be able to retire or educate my kids” was a question I heard all too much.
Most of the advice I gave was to “hang in there” and “things will get better”. I made sure that the mix of investments, (i.e. the client’s financial plan), was still best for the particular individual situation. I did a lot of handholding, and I educated, consulted and advised at a rapid rate. The panic everywhere was real and the media fanned the flames of anxiety. I stayed steady. I wanted to help my clients. This was the darkest time of their financial lives.
Now let’s fast forward to today. The economy and taxes are still a concern. We are not where we need to be. But the recovery is happening, slowly but surely. And guess what? The rampant fear is gone. Businesses of all sizes are doing better. Most of the businesses I consult with or patronize are all doing better than they were in late 2008 or early 2009. I know this because I ask the owners or the managers themselves. I get their real world opinions and it helps me become a more informed advisor. Our economy has now had 2 ½ straight years of monthly job gains. In 3 ½ short years the market has gained back almost all of its losses. Clients turned to me to help chart a steady course for them during the toughest financial market since the great depression and the most embarrassing political time of America’s existence, with approval ratings for Congress sliding down to about 10%, a 38 year low in that poll!
I get rewarded every day in my job. I feel blessed every day to work in a field where I can truly make a difference in the lives of every day Americans.
Listen below as Win Damon and I review this very topic on WNBP.com FM radio 106.1 in Newburyport
The opinions expressed in this material do not necessarily reflect the views of LPL Financial and are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results.