“How to Prosper in a Down Market”

Patricia A. Koehn is a Certified Financial Planner (CFP) and President of Koehn Financial Group. Patricia was one of the first female certified financial planners in the country and is highly sought after for wealth management, and estate and financial planning.

Patricia is the author of “Making the Money Last, Financial Clarity for the Surviving Spouse,” and is a well-known expert in the financial industry. Please enjoy this useful and timely article with great advice and information on how to prosper in a down market.

 

 

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“How to Prosper in a Down Market”

If your 401(k) has become a 201(k), you are not alone. Stocks plummeted to fresh bear-market lows, putting Wall Street on track for its worst year since 1931. The benchmark Standard & Poor’s 500 index is down 45.1% this year, and investors are very disturbed because the unemployment numbers have fallen for the past 10 months, real estate prices have fallen to record lows, and the outlook doesn’t indicate that 2009 will be much better.

This leads all of us to ask the major question, “What do I do now? How should I be handling this? Is there something I can do to help myself get through this?”

The best advice at times like this tends to be passive……be calm, stay put, don’t panic.

But, not doing anything rash doesn’t mean not doing anything at all. In fact, today’s market is awash in opportunities. You can make moves that wouldn’t have paid off when the market was higher and your portfolio was fat with capital gains. You can now be carefully and selectively able to buy low….in many cases, really low. Remember that it’s in bear markets that money changes hands and new wealth can be made. Our next decade will provide many new people the ability to become millionaires.

So, just don’t sit there:

1. Harvest some tax write-offs….all those minus signs on your brokerage statements are not awful….you can selectively sell the bad stocks or mutual funds and secure the tax losses. You can also take tax losses on those investments that you feel are positioned for the next stock market rally by selling the investment and investing in a similar position.
2. Turn off CNBC…investing success is all about looking at the big picture…not reacting to one event. Compared with previous generations, we are today inundated with “expert advice” from around the clock cable news, the internet, and numerous financial publications.
3. Convert your old IRA to a ROTH IRA….if your income is $100,000 or less. Your old IRA grows tax-deferred, but when you withdraw the asset, you pay income taxes on the withdrawal. With a ROTH, your money will grow tax-free, and when you withdraw, the money will not be taxed……so, if you feel, as I do, that income tax rates will be going up….then having a ROTH will give you more spendable income in the future.
4. Keep your expenses really low. Now is the time to hunker down and not spend anymore than you need to. So, when you are thinking about spending some money, ask yourself the question, “Do I really need this, or do I just want it?” And, only spend on those items that you really need….for we don’t know what is around the corner……how long this economy will remain negative.
5. Watch for scammers….con artists love bear markets because people are already fearful.
6. Negotiate a lower credit card interest rate…interest rates have fallen and credit card companies have become very competitive.
7. Buy low…the brave way….and dollar cost average into this market, taking advantage of the opportunities this bear market is providing.

And, finally, be involved in the financial decision making process for your money….you will either be the beneficiary or the victim of decisions made, so be involved….

In closing, my friends, save a little of everything you make, keep your portfolio balanced and diversified, and let it grow, reviewing it periodically, taking advantage of the opportunities that surround you….don’t be afraid…..and call me if you have any questions……..

Patricia A. Koehn, CFP
President
Koehn Financial Group, Inc.
3930 E. Jones Bridge Rd. Ste. 155
Atlanta, GA
404-317-3583

Thoughts About Birthdays

So today is my birthday, my real birthday. I think as we move through the stages of our lives, we really begin to ponder not only where we have been, but more important, where we are now and what our future vision might be.

I have had a wonderful two weeks, starting last weekend with a birthday party for me in Atlanta that was given by a host committee of some very dear friends, with all proceeds benefiting the Possible Woman Foundation, an organization I founded in 2001 which gives scholarships to older women in need returning to school (and then to the workplace.) And then there was this weekend! And a fabulous one it was! Starting with a surprise party, yes, a REAL surprise (the first surprise party in my entire life!) with my good friends in Dallas, then dinner and a Michael McDonald concert Saturday evening, with all weekend activities culminating in a very special family dinner tonight.

For me, birthdays symbolize new beginnings and in some cases, closure of certain events in one’s life. For example, I finally have closure with the unexpected passing of my middle sister May of 2008, not that an occurrence of that magnitude is ever easy to forget, because one always remembers…..but it becomes more bearable with time. So you choose to remember the good times and release the times that were challenging, the events that resulted in stereotypical family dynamics. And the new beginnings? Well, with the development of my new website, new branding of Wind Enterprises, and an Annual Wind Enterprises Membership Program that so many people have been asking for – these offerings all promise to be a very exciting foray into a new year, a new decade, and a new future. Oh! And not to forget the pending birth of my first grandson in a few days! That is a milestone in and of itself! Truly a new beginning in the ultimate sense of the word!

So I would like to close this blog with a very special thank you to the friends, family and acquaintances that have come into my life, (and remember, nothing truly happens by chance,) and to all those who have collectively brought me to this very special place in time where I am today. You have each helped shape, in some way, who I am and who I am becoming. And please know that it is because of you that I continue to strive to make a unique and significant difference in the lives of women and girls. With your help and continued support I will certainly take the necessary steps to move from success to significance.
Have a great Sunday!

The Right Thing To Do…

It’s Saturday, and after spending a wonderful, busy, and tremendously successful week in Atlanta, I am sitting on an airplane bound for Dallas, awaiting departure. As I settled in to a thankfully not-anywhere-near-capacity main cabin, after everyone was seated and ready for take-off, I noticed out of the corner of my eye the flight attendant walking hurriedly to the back of the airplane, on a mission to do something that obviously was very urgent. When she turned around, I realized she was carrying a very large green and brown army bag in her hands, with a very young 20-something year old man in matching army fatigues following her back up the aisle to the First Class section of the aircraft.

My initial response was, “WOW, what a nice thing to do for this young man,” and then, as I pondered more deeply, my thoughts morphed into, “You know, its not only a good thing to do, it’s the RIGHT thing to do.” After all, without the thousands of young men and women who literally put their lives on the line every day in duty to their country and to protect our fellow countrymen, we certainly would not have the opportunities to continue to live our lives, day in and day out, in freedom and peace. The freedom and peace that is bought with sometimes a very great price to these young men and women soldiers who defend our country.

I spoke with the flight attendant later in the flight and she informed me that they usually make that seating change when the uniformed serviceperson checks in at the gate, but somehow that young man got through the line without the First Class upgrade; my comment to her was that even the Frequent Flyers who travel often and get First Class upgrade perks should be removed from their upgraded seat if there is only space enough for the traveling soldier.

Kudos to the hard working staff of American Airlines for taking the time and extra effort to do the right thing and make that First Class upgrade happen for that one soldier….it may be the last time he will ever get to experience that show of gratitude from a country that appreciates his service.

And the Winner is…

Okay, so I admit it…finally….that I am a staunch, confirmed, dyed-in-the-wool, absolutely-positively-have-to-be-there, cannot-miss-even-one-second-of-the-excitement (except the commercials of course) OLYMPIC-AHOLIC. And over and above that illustrious title, I am convinced beyond a shadow of a doubt that the show could not possibly go on without my presence in some way, shape or form… yes, it’s really true! I admit it.

I was there cheering Michael Phelps on through his astonishing triumphs of Gold Medal victories, each one more exciting than the last, counting down to the record breaking, sensational number eight. And certainly Nastia Liukin would never have won her Gold Medal in the overall competition had I not been there through every graceful twist, turn and tumble of her lithe body. And then, of course, there was little Shawn Johnson, following close on Nastia’s steps; ever so confident, ever so different from Nastia, and ever so commanding in her own right.

And had I clapped just a little harder, perhaps Dana Torres would have stretched a little further to overturn that 1/100th of a second lead her competitor had over her to put her in Silver position instead of Gold.

I have been there through it all so far, cheering our women’s volleyball duo, Misty May-Treanor and Kerri Walsh, through each of their Olympic successes, totaling over 105 wins for the past year; crying as Alicia Sacramone missed her mark and didn’t qualify for the Gold medal she so desperately wanted in gymnastics; laughing as Kobe Bryant and Lebron James hooked yet many other difficult baskets over the heads of their competitors to put the US on top for Gold medal contention in men’s basketball.

It’s been a great Olympics so far, and it’s not over yet! Rest assured, one thing you can count on is that I will be there to support, to yell, to cheer, to cry, to edge our TEAM USA on to greater victories as we deal with our competitors with honesty, integrity and pride in these XXIX Olympic Games.

I leave you with one quote, from the 41 year old Olympic swimmer Dana Torres: “You don’t have to put an age limit on your dreams.” Thanks Dana, and have a great week!

A Night to Remember

Anyone who witnessed the opening ceremonies for the Olympics this past weekend could not help but be amazed by this spectacular event. Displaying great passion, creativity, and commitment, the 18,000+ performers captured the attention and the hearts of the entire world.Over one billion people watched this truly amazing performance. In fact, if you were like me, you were glued to the TV screen the entire four and a half hours in order to not miss a single one of the hundreds of amazing feats performed by these talented entertainers!

And so what lessons did this massive, $300,000,000 production teach all of us who so patiently watched this interweaving of grandeur, history and vision with awe, as it unfolded in front of our very eyes?

First – that we are all connected. The Human Race truly needs each other in order to exist in the global world we now live in. Even more important, the earth needs our individual help, as well as the joint cooperation of everyone on the planet, so that our children will have a sustainable environment to call home for generations to come.

Second – that great vision and commitment can result in great accomplishment. For example, rehearsals for the opening event took more than one year; building the Birdsnest, the Water Cube, and all of the surrounding facilities for this once in a lifetime event took 8 years! And the Chinese accomplished this massive undertaking on-time and with great élan.

Third – that by working together, each one of us can make a difference in the world. No matter how big or small a part you may think you may play in the overall scheme of life, your effort does count. Working together to create something significant can result in a meaningful outcome that can positively change the world, like the 2000 synchronized drummers in the opening segment Friday night, or the lithe dancers who painted the story of early China in Sanskrit with their bodies on the largest LED screen in the world.

Friday evening, 8/8/2008, for one brief moment in time, we held the hopes and dreams of world peace in our hearts as athletes from around the world came together in friendship and camaraderie to compete in the XXIX summer Olympics. We can learn much from their staunch persistence, their unselfish dedication to their goals, and their willingness to strive synergistically to reach higher and go for the gold!

Turn Up The Heat – Part I

Here it is August, already! Interestingly, the weather here in Dallas typifies Neil Diamonds best-selling CD, Hot August Night – many of you will remember that. With highs of 107 projected this week, there doesn’t seem to be much relief in sight. We have already beat the all-time high of 19 days over 100 for the YEAR, and August is just beginning!

So why am I going there? Well, it’s easy. Heat is synchronous with energy, and HIGH ENERGY is how we are powering the second and third phases of our new website, www.WindEnterprises.com. But before I tell you about these new and exciting announcements, I want to make sure you have had the opportunity to view some of our new websites’ offerings, like our streaming video on the Home Page, titled “She Dared To Dream.” Take just a few minutes, when you can, to see why so many people’s lives have been changed by our phenomenal speakers at Wind Enterprises’ Possible Woman Leadership Conferences and Events. And have you viewed our inspirational quotes from some of the great men and women leaders in the world? More to come on that front as we expand that offering as well on our new website.

Well, that’s it for today! I want to make sure you have time to peruse our site in it’s entirety before we introduce you to our next phase of making a unique and significant difference in the lives of women globally.

Till we talk again! Warmest regards…

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