March 26, 2020

Concepts to Consider During Uncertain Times

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These are certainly stressful and uncertain times we find ourselves in.

The recent decision to extend the tax filing deadline to July is a welcome development. It removes one layer of financial stress that many of our clients were facing. However, the volatility in the investment markets is a much different story.

It is impossible for us to predict how many people will be affected by the Coronavirus or how the virus will impact the economy. We have had serious discussions with many of you and we wanted to take a moment to summarize many of our thoughts in this email. Whether a younger investor, retiree or client holding a larger than average portfolio, here are some basic concepts to consider.

As a younger investor, time is on your side. Unless you are saving for a financial goal that is less than 10 years from now, this recent decline in the stock market may present opportunities for you to consider.

But remember, no one can time the market on a consistent basis and win. If you have time on your side, work with an advisor who will educate you on the benefits of long-term investing. While past performance cannot predict future results, the general consensus is that getting into the markets early in life, and investing through the highs and the lows allows you to ride out the bumps and have your investments appreciate over the long-term. Get some help putting the proper portfolio together.

The recent SECURE Act for Individual Retirement Accounts (IRAs) significantly reduced your control over how you distribute wealth upon death. We are living through a stock market decline that necessitates the need for reviewing all options. Maybe you could gain back the control that recent legislation took away?

Request a Roth IRA conversion analysis from our tax advisors. Once again, stock market declines may make a Roth conversion more attractive as it may potentially put you in a position where future gains could be tax-free when the stock market recovers.

The current environment will be especially difficult on the fund-raising activities of our local charities. Although the stock market is currently having a very difficult time, we did just have record breaking growth over the last 10 years. If you have stock accounts with investment gains, consider a Donor Advised Fund or Family Foundation as a tool to help you use the tax code to your advantage as you support those in dire need.

Recent events are having a major impact on many of our clients that are retired or looking to retire in the next few years. It is imperative to have a financial plan that lets you know if you have enough money to live the retirement you envisioned.

Depending on your age, many retirees need a retirement income plan to ensure that your money will last 20, 30 even 40 years or more. Having a retirement income plan will allow you to face these uncertain times with a feeling of confidence.

If you own a home or have other debts, take the time to investigate how these low interest rates may allow you to restructure your debt. Lower payments and significantly reduced interest charges may be a realistic outcome if you take action.

Please feel free to take these thoughts and ideas to your financial advisor. If you do not have a financial advisor or are looking for a second opinion, we are here to help.

DK Wealth Management LLC and the work of our private wealth advisor, Kris Lindley, CFP® was created to help organize your financial affairs and place you in a position to face your financial future with greater confidence.


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Joshua J. Bodenstadt, CPA
DK Wealth Management LLC
4225 Executive Square, Suite 900
La Jolla, CA 92037-1485

Tel 858-642-5050 x2045
[email protected]

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Kristopher Lindley, CFP®
Private Wealth Advisor
DK Wealth Management LLC
12555 High Bluff Drive, Suite 210
San Diego, CA 92130

Tel 619-550-4619
[email protected]

DK Wealth Management LLC | La Jolla | University Heights | Woodland Hills | Beverly Hills

Investment advice offered through Integrated Financial Partners, doing business as DK Wealth Management LLC, a registered investment advisor. Joshua J. Bodenstadt is a solicitor to Integrated, compensated for solicitor services. Joshua J. Bodenstadt does not provide investment advice. Joshua J. Bodenstadt is not affiliated with Integrated Financial Partners. Click on the links for a copy of the firm’s ADV and solicitor disclosure statement.

The information in this material is for general information only and is not intended to provide specific advice or recommendations for any individual. Integrated Financial Partners and LPL Financial do not provide legal/tax advice or services. Please consult your legal/tax advisor regarding your specific situation.

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