• Nate Baim, MBA, CFP®

Is Now a Good Time to Invest?


Enjoy this week's edition of the Planner's Beta


Beta (n) - climber's jargon that designates information about a climb This digest's purpose is to share observations, ideas, and treasures found this week which you may also find insightful. Sharing does not mean it's an endorsement. I am endorsing the pursuit of knowledge and exploration.



Something Fun

Stalk Lions, Pandas, and Penguins During Your Social Distancing With These 10 Awesome Animal Livestreams (Goodnews Network) - Need a complete break from the current news cycle? View this glossary of 10 animal video live streams. View dogs, eagles, jellyfish, and more to help during your social distancing. It brought a smile to my face!

Another Something Fun - Because We All Need Some

Love Thy Neighbor Now (NextAvenue) - Being home for an extended period can be hard. This article has nine ideas to help out your neighbors and friends, while still being "socially distant" from them. 

Something From Nate

Federal and state governments are taking drastic actions to help those impacted by the spread of the virus. But, these policies are likely only going to go so far. They are not going to solve everyone's issues.


In response to the virus, I am making myself available for anyone who has lost work or income for a no-cost hour-long strategy financial planning session. In this session, we will focus on taking stock of their current income, assets, and debts. We will then strategize on how to manage their budget and obligations. The goal is to create an action blueprint for managing finances with limited or no income given their unique circumstance.


As a follow-up, participants will receive a strategy sheet and a template to build their resume (yeah, it is never too late to get the resume up to snuff). If you know of someone who would benefit from this, forward them this notification. I will have to operate on a first-come, first-serve basis. Unfortunately, I am currently only able to accept two sessions per week (will revisit based on demand and bandwidth).

Something About Financial Planning

I've received several calls from clients asking if now is a good time to invest. The truth is, it depends. As financial planners, we place a strong focus on managing risk. If people are thinking about investing in the market, I encourage them to take stock of their current financial plan and the risks they face before investing any money into the market. From a high level, this is what I have been asking my clients to help determine if now is an excellent time for them to take on risk:

  • How confident are you in your current employment? Do you see the potential of losing income or work due to the economic slowdown?

  • What is your current budget? Are you spending more than you make?

  • Do you have a fully-funded emergency fund?

  • Do you have debt? What kind of debt do you have? What is the interest rate you are paying on those debts?

  • If you invest in the market, when do you expect to need the money? How do you plan to use the invested capital?

  • How would you feel if the market fell an additional 25, 30, or 35%? 

  • If you can afford to take the risk, how are you going to invest? Do those investments align with your stated goals?

We do not know how the market is going to perform over the coming weeks, months, and years. Answering these questions will help you understand if your financial plan has the capacity, need, and tolerance to invest. If you have questions about your unique situation, feel free to place a time on my calendar.

Something About Economics

How It's Made: Toilet Paper - I hear it is a hot commodity these days, so I became curious about how to make the two-ply wonder. What is impressive is that no one person could make a significant amount of toilet paper on their own. From a high level, the toilet paper requires the logistics to collect all the recycled paper, the chemistry to process the pulp, the engineering to design a manufacturing process, resources to operate the machines, and the supply chain to distribute and sell the product. Manufacturing toilet paper is a complex process, with a massive amount of inputs, which requires significant coordination. Looking at one product such as toilet paper, helps us understand the economy is extensive and super sophisticated. No one person could manage the production of toilet paper all on their own. 


 

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Have something on your mind? Schedule a free call with Nate.

 

Pursuit Planning and Investments, LLC is an Investment Adviser registered with the State of Oregon. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions. Past results do not guarantee future results. Please contact us at 971-803-5948 if there is any change in your financial situation, needs, goals or objectives, or if you wish to initiate any restrictions on the management of the account or modify existing restrictions.  Additionally, we recommend you compare any account reports from PPI with the account statements from your Custodian.  Please notify us if you do not receive statements from your Custodian on at least a quarterly basis.  Our current disclosure brochure, Form ADV Part 2, is available for your review upon request, and on our website, www.planyourpursuit.com. This disclosure brochure, or a summary of material changes made, is also provided to our clients on an annual basis.