Mainebiz

W W W. M A I N E B I Z . B I Z 17 M AY 5 , 2 0 2 0 W E A LT H M A N A G M E N T / R E T I R E M E N T I n these uncertain times, there's one thing Molly Reinfried can be sure of — when clients at HM Payson get in touch, they're going to say something like, "I know what you're going to tell me to do, but I want to know why I shouldn't be changing things." e market has stabilized a little after the first plunge in March when it became clear what restric- tions related to COVID-19 would mean, but inves- tors are still hungry for reassurance. "ere are more up days versus down days," says Reinfried, chair of financial planning for the Portland firm. "But the timeline is unknown. Who knows what things will look like?" Wealth managers have a unique task these days — trying to keep clients calm and on track in light of a global pandemic and unprecedented market disruption. Mainebiz caught up with a few to find out how inves- tors are doing, and what advisors are telling them to help them weather the financial storm. In general, keeping clients on track comes down to mindfulness, she says. at means not overreact- ing to market fluctuations and things they have no power over. "Have some control over the things you can control, like spending and savings." No panic, but anxiety Bryan ompson, CEO of ompson-Hamel in Presque Isle, says what clients are feeling isn't so much panic as a "raised level of anxiety." "Mostly because they are out of their routine, feeling stuck to their home, [some] having to homeschool while working." Helen Andreoli, founding partner and CFO at Great Diamond Partners in Portland, says in gen- eral the firm does a significant amount of planning work to determine appropriate investments, and that has helped keep the panic at bay. Other factors are consistent conversations with clients about their cash needs and developing plans to cover those needs so that investors aren't forced to sell into a volatile market to cover living expenses. "Our clients are wonderful people who recog- nize that the world is facing bigger issues than stock market volatility, so they have been able to keep a healthy perspective," she adds. Geoff Alexander, CEO of Portland-based R.M. Davis, says while he hasn't seen much panic "there is plenty of conversation around the disturbing reality that our physical wellbeing is in jeopardy, and that the post COVID-19 world will look different." "During this very short period of time, it would be understandable for most investors' sense of financial security to be undermined to varying degrees," he adds. "After all, it's human nature to feel the pain of a 10% loss more than the pleasure of a 10% gain." With that in mind, here are the advisors' top five tips for investors: Check in and review goals Reinfried asks clients about goals,"How did you start this year?" Whether the goal was to make higher mortgage payments, or save for retirement or a child's educa- tion, she asks if that's changed, and if adjustments are necessary. If someone's income hasn't changed, they should operate as normal, she says. Some people may have more income if they're working from home, not commuting and not spending money the way they normally would. "Do we do more with that savings?" she asks. e check-in may include rebalancing an account to stay on target for future goals. Andreoli puts it this way: "Don't put your head in the sand." To investors who have worked on a plan, either on their own, or with an advisor, she says, "Now is a great time to revisit that plan and determine if and/or how this could impact your longer-term goals. e sooner you get ahead of any planning changes you need to make, the more sound your plan will be." ompson agrees. "Successful investors act on their plan," he says. "While failed investors react to the market. And in the wrong way." Keep an eye on cash flow and capital It's the topic no one likes to talk about, Reinfried says. "I don't like to call it budgeting," she adds. "I like to think of it more as moderating your spending." Going over the past year, or even a few months, of expenditures, and figuring out spending patterns can help rein in things like stress spending, and ensure there's money available for emergencies. "ings pop out to you that you may not even realize," she says. Andreoli says, "If you have enough cash flow and/ or savings to cover your needs, you won't be forced to sell into a volatile market and riding this volatility becomes a little easier." Alexander takes it a step further. "Always main- tain sufficient capital in safe assets, such as cash and fixed income, so that you never need to sell equities at an inopportune time." P H O T O / T I M G R E E N WAY staying calm Wealth advisors offer reassuring advice for an uncertain time B y M a u r e e n M i l l i k e n C O N T I N U E D O N F O L L OW I N G PA G E » F O C U S Molly Reinfried Molly Reinfried, a certified , a certified financial planner, is chair of financial planner, is chair of the financial planning group the financial planning group at at HM Payson HM Payson in Portland. in Portland. Have some control over the things you can control, like spending and savings. INVESTING IN

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