People sometimes ask us why we’re Capitol Retirement Strategies and not “Capital” Retirement Strategies. Since Steve and I are both natives of the DC metro area, we decided to go with the “o” and not the “a”. That’s why our logo is the Capitol rotunda. As I write this on January 7th, 2021, I’m still trying to process what happened yesterday at the Capitol building, in the heart of our democracy. I’m feeling a lot of emotion, and none of it is good.
But there’s one entity that doesn’t care about how I feel, and that’s my money. As I write this today, the S and P 500 has gained 55 points! After a year of raging Coronovirus, massive unemployment, and unprecedented political strife, the S and P is up 15% year to date. As “bad” as 2020 was, it was arguably the best year of this century for people who own equities and are at, or near, retirement.
So here is the question I pose to you as we head into 2021. What if, in a bizarre turn of events, the year is “good” but stocks are down, say 15-20%. And what if 2022 is also comparatively stable, but the markets are down again. And you’re not allowed to say “Oh, that can’t happen”, because 2020 officially eliminated that phrase from our lexicon.
As we stand at the money mountaintop looking down, do you have a strategy and specific game plan that is laser focused on having enough income and liquidity to last the rest of your life? (Hint-If you’re one of our clients reading this, you do). Have you prepared for a health or long term care calamity? (Hint-See previous hint). From all of us here at Capitol Retirement Strategies, may you and your family have a Happy, Healthy, Safe and Tranquil 2021!