Better Banking with Malvern: Wealth Management During COVID-19

With the ongoing worldwide cancellations and rescheduling of equestrian competitions due to Coronavirus (COVID-19), the equestrian industry as we know it is on hold.  There may be less certainty surrounding the immediate future in our sport, but one thing we undeniably have more of, is time on our hands.  This could be the opportune moment to take the time to think about you and your investments for the future outside the ring.  Is it still safe to invest? What can I invest in?  Malvern Bank is committed to supporting everyone during this time, and this week’s blog will help answer some of those questions. We spoke with Jackie Reeves, AIFA® PPCTM of Bell Rock Capital, Malvern Bank’s Wealth Management partner, to learn more about today’s markets and what it could mean for you and your investments.

  • What, if any, investments are still safe? With the recent market downturn, high quality bonds and equities have been completely discarded as various managers were forced to access liquidity. The key is to focus on high quality companies with strong balance sheets and solid cash positions.
  • What assets do I need to be careful to protect? We believe you should perpetually review your annual cash flow needs and make sure those specific assets are conservatively managed.
  • How do I find someone to help advise me during these times? Contact a registered investment advisor as they are fiduciaries such as Bell Rock Capital who has a strategic partnership with Malvern Bank.  They can provide education and guidance to your individual circumstances.
  • The market is responding almost identically to a natural disaster and the devastation from that because it is so immediate. What are the implications of this and how is it different? Many market pundits are comparing this downturn to the 2008 time period.  There was a pause in the markets and there was a substantial stimulus package voted through by our elected officials and signed into law. However, the major difference this time, in 2020, versus 2008 is that there was no debate about the need for government intervention, like there was in 2008.
  • If you are not already investing, when is a good time to get in? The most important question to ask before investing is, “How long can I invest until I will need to extract the funds?” The answer to that question will begin to indicate if you can invest and how risky you can be with your investments. Next, would be to have several planning type conversations with your advisor. This is a good time for many as there are a lot of dislocations in the market for those individuals that are conservative as well as for people that are aggressive.
  • Are there any broad external factors to look for indicating a possible rise? (Employment?  Public approval? Etc.) The market indicators are going to be distressed for a couple of months and we believe that is largely priced into the broader markets, at this time. Also, quarterly earnings are going to begin in about two weeks, and we expect many to continue to discontinue 2020 guidance.

The takeaway?

Do not hit the panic button.  Plan ahead.  This is not the 2008 financial crisis, nor is it a conventional economic downturn.  This market volatility has been created by a virus.  We fully expect the economy to revive itself.  If you are looking to invest (or increase your investment), set aside the funds you need to get through the crisis, and seek a registered investment advisor such as Bell Rock Capital.  They can provide the tools you need to navigate your wealth management through these turbulent times.

We equestrians always plan and prepare for the next big goal, whether it is a sentimental milestone, a National Finals, or the Olympic Games.  But how many of us take the time to become educated and plan for our financial futures?  Now might be just the time.

Please feel free to contact me or our Senior Investment Advisors, Sally Lawson and Andrea Cho. They can be reached at WealthManagement@MyMalvernBank.com.

Hillary Dobbs offers business solutions for equestrians across the country. As a former grand prix show jumper, Dobbs is now the Assistant Vice President and Private Client Officer at Malvern Bank. The new Equestrian Business Division at Malvern Bank is able to tailor programs to individuals and businesses and prides itself on its ability to structure loans based on individual needs. Malvern Bank offers lending services for equestrian properties and equipment, a high yield money market account for equestrians and can handle client deposits, insurance and wealth management. To learn more about Malvern Bank and the Equestrian Business Division click here.

Jacqueline Reeves is Managing Director of Bell Rock Capital, LLC. She heads the firm’s research and portfolio strategy group. At Bell Rock, we focus on building wealth for individual and families as well as 401k advisory services including on-going monitoring of investments and employee education. Ms. Reeves is a resource to the national media, including CNBC, Bloomberg television and radio, The Wall Street Journal, Business Week and various other printed media. Our mission is to deliver returns consistent with client goals.

Jackie serves as a Trustee board member with the YMCA of South Palm Beach County. She is an executive Board member of the Greater Boca Raton Chamber of Commerce, a 2013 DIAMOND Award recipient, a 2010 recipient of the Chairman’s Award, and chaired the 2011 Leadership Boca class.  Jackie volunteers with the George Snow Scholarship Fund and the Junior League of Boca Raton.  Ms. Reeves was a Soroptimist Award recipient in 2013 and a Woman Volunteer of the Year nominee for the Junior league of Boca Raton in 2017. Jackie is a Past President of the Junior League of Boca Raton, the JLBR Endowment Fund and the Spirit of Giving network.

Ms. Reeves holds the AIFA® and PPMTM designations. The AIFA Designation certifies that the recipient has advanced knowledge of fiduciary standards of care, their application to the investment management process, and procedures for assessing conformance by third parties to fiduciary standards. The PPC Designation certifies that the recipient has specialized knowledge of retirement plan compliance requirements, common plan services, and plan administration.”

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