Hello. I’m Ken Moraif, Senior Retirement Planner and Founder of Retirement Planners of America, and this is our market alert video for the week ended March 20, 2020. This was not a pretty week on the markets. The S&P and Dow were both down over 10% for the week. The continuing damage that we fear is going to happen to the economy because of the coronavirus is causing people to sell their investments and that’s why we think we’re seeing all this downside.
One of the big problems, of course, is that 70% of our economy is driven by consumer spending; and right now, the government is telling consumers to stay home. And while we can consume online, a lot of the spending that we do is not online, and that is potentially spending that will be not replaced. This is demand that is not going to be replaced in many cases. For example, if you don’t go to a restaurant this week because you’re staying home, when all of this passes — and it will pass — then you’re not going to go to the restaurant twice that week to make up for it. So, that restaurant has lost that money forever. And you can repeat that across the economy in many businesses. So, this is a terrible thing.
And this is a brand-new virus, right? It’s called novel which means new, and we’ve never been exposed to this before. But we will get through this. It will come to an end. The important thing is to survive physically and, also, financially long enough for it to end and you’re still able to survive it. That’s the key thing.
So that’s why our investment protect — we’re out right now. We’re sitting on the sidelines, and that’s just to wait this thing out. If we do everything we can not to get an infection, then hopefully we can wait this thing out that way; and then when it comes to an end, we can then go back out into the sunshine and live to fight another day.
Now, if you don’t know what to do, if you’re feeling a lot of angst and all that, we want to relieve that pain, that anxiety for you. We want to help you if we can. The team that helped guide our clients through the credit crisis of 2008 is still in charge of our company today, and we’re still making the decisions; and we want to bring that experience to bear to help guide you through this crisis as well. If you want to avail yourself of that, go to our website. It’s RPOA.com – Retirement Planners of America.com. Click on “Meet with an Advisor” and you’ll sit down with one of our advisors, and they’ll go through with you our planning strategies and all those kinds of things and help give you some guidance. So, take advantage of that. This is the time. We want to help as many people as we can as possible. There’s no charge or obligation, and we’ll part friends regardless of what happens. But at least get a second opinion about what to do.
Thank you for watching this video and we will keep you posted.