In the month of July, we had a very minor stock market pullback. Nevertheless, it was enough to cause a bit of worry for conservative investors. What I am about to describe actually happened, but of course, I changed the name to protect the innocent.
Wall Street Steward Blog
My job is to be a good steward of my clients’ assets. Whether that means encouraging them to make a decision or exhorting them NOT to make a decision, it is all part of the gig.
I promise I do not make this stuff up. This is a conversation that occurred earlier this week. No names, of course. Not only are the actual words included, but my thoughts are thrown in for a little entertainment.
It was just another Tuesday, until my assistant called me and said “Mrs. Rice is on the phone, and she said she needs you to help them with an issue. It sounds bad. Normally, they let me assist them, but this time she only wants to talk to you.”
Just to refresh your memory, if I write a “case study” blog, it is an event that actually happened. I do not make these up, although I might embellish a bit to make the stories more interesting. That is creative license, and believe me, as the reader, you should thank me….if I told these “to-the-detail” how they actually happened, my blog would morph into the prescribed treatment for insomnia.
As you all know, I am an analogy person. In the investment business, we are charged with making complex topics simple, and analogies are the tool that I use to accomplish this task.
The next time you are in public, and the subject of investing rears its ugly head, listen closely. Inevitably, there will be an obnoxious male bragging about buying a stock at $1 per share while watching it rise meteorically to $10.
I confess that service is one of the weakest areas of my financial planning practice. Please do not misunderstand – our service is not weak, but out of everything, it is the spot that I could improve the most.
Under normal circumstances, I am a proponent of rolling over 401(k) assets as soon as one is eligible. In fact, I have only encountered a handful of situations in my career when it made more sense to leave the 401(k) in-tact at the old company.