Following is a letter that was sent to all Navigoe clients on the evening of Thursday, March 12, 2020.
I hope this email finds you and your family healthy and doing well. For all of us, staying healthy through this current coronavirus outbreak is very important. I want to provide you with an update with what we at Navigoe are doing with respect to the coronavirus and the global equity markets.
Let me start by saying that from an investment perspective, there is nothing to worry about. If you are not retired, this is an excellent buying opportunity. For our retired clients, your portfolio is designed for periods such as this. Look below for more details.
As to Navigoe, the business is set up such that we expect zero effect on our ability to continue to deliver world-class wealth management. More on that below.
Investments – For Those Retired or Approaching:
For those of you who are retired, or approaching retirement, we have implemented a freeze on rebalancing between stocks and bonds. In effect, that means we are not selling your bond holding to purchase more stocks. This is the tested approach we have established to maintain cash-flow to you during periods of equity downturns.
With this strategy, we will use your fixed-income holdings (bonds) to provide you with your cash-flow needs and allow the equities to ride through this period. Most of you have in excess of 8 years worth fixed income to support your cash-flow needs.
Investments – Non-Retired Clients:
For those of you still adding to your investments, a downturn such as the one we are experiencing is an excellent opportunity to purchase stocks on sale. At Navigoe, we are rebalancing your accounts as per our guidelines. The result is that we are selling fixed-income funds to purchase equity funds. This disciplined approach is the quintessential “sell-high and buy-low” strategy.
Navigoe’s Office and Crew:
Currently, everyone here at Navigoe, and our immediate families, are healthy.
All employees have the capabilities to seamlessly work remotely, from any location with internet access. Additionally, we have unlimited, paid sick leave and family leave. The result is that any employee, at the first signs of sickness themselves, or of a family member, will switch to working remotely. This will allow us to function as usual, while being able to attend to the health needs of oneself or one’s family.
We do not expect any lapses of services during this period.
Virtual Meetings with Navigoe:
As always, we are available to take your calls and address any questions you may have. Additionally, we are more than capable of moving our typical live meetings to virtual, face-to-face web meetings. Here at Navigoe, we have the latest tools to be able to host high-quality virtual meetings.
Just sit down at your kitchen or dining table, prop up your iPad, laptop or just your cell phone, and you are ready for a virtual, face-to-face meeting with Navigoe.
Please do not hesitate to reach out to us with any questions.
All the best,
Scott and all the Navigoe Crew