December 2008

Dear Clients and Friends,

This is one of my favorite times of year. Christmas, New Year’s Eve, grateful times with family and friends, and special nostalgic food; these are some of the things we all love.

Its important to realize that life goes on even though negative news continues to flood the airwaves. Stop and look around at your life. During your day you see others shopping do you not? I know people getting mortgages and credit card companies begging them not to cancel their cards! Life is happening right now, so don’t forget to enjoy it!

For a good laugh go to this SNL video on the financial crisis-

Saturday Night Live- Don’t Buy Stuff

My book on raising financially independent kids is out and makes a good Christmas present to those parents and grandparents in your lives. There is solid advice for the different situations we get in where money is concerned, even with our adult children.

My article in this issue is taken from a great associate advisor, Brent Kessel, with his tips for being crash-proof.  Brent shares our philosophy and is one of the top 250 advisors in the country!

Lastly, it is good to remember that your exceptionally allocated Matrix portfolios are positioned well for the long-term. What is happening out there is short-term. Your portfolios may be passed on from generation to generation!

Here is wishing all of you a lovely holiday!
Kasey Claytor

 

TIPS to Be Crash Proof

I wanted to share with you some tips in response to the current maelstrom in the market. Perhaps these tips will help you to remain financially safe, sane and calm as you navigate this storm.

When experiencing financial distress, our natural inclination is to want to DO SOMETHING. With investing, this usually backfires. Here are three things we recommend to help cope with these turbulent times:

*1. Consider decreasing your discretionary spending in the short run, and then re-evaluate the need to reduce longer-term spending in January. While the dollars may not seem like a lot, shifting the momentum from “Yes” to “Not right now” has a tremendous psychological effect, and over time, a very positive financial impact as well. Furthermore, if you can afford to trim back your monthly distributions from your Matrix account, now is a great time to do so.

2. Refinance your mortgage if you have less than two years to go in your fixed rate period (assuming you plan to stay in the home long-term), or if your rate is above today’s rates. Call or email us for a good mortgage broker recommendation if you don’t have one.

3. If you have more than $100,000 in any one bank, wire the excess into your Matix account so that we can invest it. As famed investor Sir John Templeton said, “To buy when others are despondently selling and to sell when others are avidly buying takes the greatest fortitude and pays the greatest reward.” Now is such a time. Even if you’d prefer to have your extra cash in money markets, they will be more secure at Schwab than in a non FDIC insured account at your bank.

In summary, this too shall pass. We believe that owning a diversified global mix of equities and short-term bonds is the best way to ensure your financial freedom in the future. Please feel free to call Osprey with any questions or concerns. We can be your lighthouse, here to help you navigate this storm.

*Tips from Brent Kessel

 

Coaching Services

We all want successful adult children. We love them so very much, but sometimes we make it too easy for them. Sometimes struggle is the best thing for them! You can help in many ways you may not know about. Our coaching services can help you develop the problem solving skills needed to support your adult children toward success, so you both will thrive! One small monthly fee includes 3 thirty minute phone consultations and unlimited email per month. Give us a call. Deep discounts for existing clientele.

This entry was posted on Monday, December 15th, 2008 at 3:09 pm and is filed under Newsletters.