allworth-financial-logo-color
    • Wealth Management
      • Financial Planning
      • Investment Management
      • Tax Planning
      • Estate Planning
      • Insurance Services
    • 401(k) For Employers
    • For Airline Employees
    • Our Approach
    • Why People Work With Us
    • Office Locations
    • FAQs
    • Our Fees
    • Our Story
    • Advisors
    • Our Leadership
    • Advisory Firm Partnerships
    • Allworth Kids
    • Webinars & Events
    • Podcasts
    • Financial Planning
    • Investment Management
    • Tax Planning
Meet With Us
  • Locations
  • Login
  • Contact

Try to Smile, But Stay Invested

  • Share this post

Allworth CEO Scott Hanson shares why it's important to stay invested, even as the stock market turbulence continues. 

 

I received a call this week that I haven’t stopped thinking about.

While the call was an appointment with my client, Darrell (and therefore expected), it’s what he said when I first picked up the phone that has stayed on my mind.

When I answered, Darrell began—not with a standard greeting, mind you—but instead jumped right in with:

“Scott, I know that I should stay invested. And I know that you know that I should stay invested. But I just want to hear you tell me that I should stay invested.” 

We both laughed for a moment, which, I’ll admit, in the midst of everything we are all going through, felt surprisingly good.

I don’t frankly know where the markets will be next week. And I don’t know where the markets will be in a month. (No one does.) Nor in a year. (Same thing.)

Yet, based on my knowledge of market history, my nearly 30 years of experience, and my having guided clients (and a growing firm) through four financial crises, I’m very confident about what markets will do in the future.

And you should be, too.

In that sense, one essential goal for everyone who saves and invests is to simply get through this. This moment. This time. This downturn.

To persevere and manage our anxieties today.

Financially, above all else, getting through today means avoiding emotion so you stay in position to benefit when the next bull market starts.

Because when the fog and uncertainty lift—and they will lift—it remains my experience that the people who reach their financial goals are usually the same people who manage their anxieties and stick with their plan.  

Turbulence is scary. Turbulence is normal. (And many vacations are bracketed by it.)  

Most of you have experienced the terror of a rough flight.   

When that plane is jumping around, it’s horrible. Structurally, you can’t believe it will hold together, and moments like that can undermine your will to travel.

But, eventually, you land in Hawaii, or Mexico, or Europe, and you forget all about that flight.

Why? Because the plane held together (as deep down you knew it would), and the pilot got you to your destination (as deep down you knew he or she would).

The most common reason for turbulence during a flight is merely air streams in the atmosphere. Air is like water, and there are currents of air up in the sky (just as there are water currents in the ocean). The jet is going incredibly fast, and it hits those invisible currents, and so the plane suddenly rises and falls and increases and decreases in speed.

Turbulence is normal. In fact, those of you who fly a lot should expect it.

What’s abnormal is a flight without any turbulence.

Which makes the seamless, silky smooth and uninterrupted 11-year bull market we just finished all-the-more extraordinary.

But were the past 11 years really all that smooth? Or, is that just what we remember?

You may have forgotten about all that rough air from the end of 2018.

In the last quarter of 2018 (Oct-Dec 31st), the S&P fell almost 14%, the Dow about 12%, and the Nasdaq 17.5%.

Major averages in 2018

 

Now, to be sure, the above turbulence wasn’t quite as bumpy as the flight we are on right now, but then, our most recent bull market was, in a sense, a very long holiday bracketed by periods of typically rough air.

Cash is not king.

Nobody enjoys losing money. But, sometimes, when the market hits a rough patch, people get so worried that they consider selling their investments to “move” to cash.

That’s understandable, but here is why that’s usually a terrible idea.

First, you lock in your losses.

People tend to sell when the market falls, after they’ve incurred a loss. But if you’re an investor and you regularly check the market, or, say, the balances of your retirement account(s), and you see a decline?

Hard as it is to accept, it’s meaningless.

Yes, your balances are down on paper, but your losses are not realized unless you sell.

If you don’t sell, the fact is, the only thing that’s down is the price.

Second, current inflation, at roughly 2%, is higher than the interest paid on savings or money market accounts. People who move to cash now are not only locking in losses, they’ll be swimming upstream as inflation eats away at the value of their money.

(Quick fact: $1 invested in the S&P 500 in 1927 would now be worth over $7,000, whereas $1 invested that same year in Treasury bills would now be worth about $21.00.) 1

Stick to your plan. (And if you don’t have a plan, now’s a great time to create one.)

When you team with a good advisor (principled, credentialed, experienced and educated), you typically do so to help you manage, first, your savings and investments, but, second, to help you develop a long-term financial plan that impacts your budgeting, approach to Social Security, income sources, taxes, debt, estate plan and, inevitably, your transition into and through retirement.

All of that is valuable in ways you should be able to quantify but also “sense.” Simply, what is the emotional value of ongoing financial guidance, and feeling prosperous, confident, and part of a team?

Which brings me back to this week’s call with Darrell.

What was so gratifying about the call, is that after years of working together he knows himself well enough to be able to tell me what financial guidance he needs during a downturn.

 

1 https://www.thestreet.com/investing/why-investors-should-stay-in-the-market

 

Give yourself an advantage. Sign up to receive monthly insights from our Chief Investment Officer, and be the first to know about upcoming educational webinars. You'll also get instant access to our retirement planning checklist.

Related Articles
See more articles
March 26, 2025 The Myth of Market Timing: How Emotional Investing Can Lead to Poor Outcomes

Is your ‘gut’ in charge of making investing decisions for you? Here’s why that’s a bad strategy.

Read Now
February 03, 2025 How to align your investment strategy with your retirement goals

As you approach retirement, your goals require more than just saving. Discover the power of a more tailored investment strategy.

Read Now
September 24, 2024 Alternative investments: The need-to-knows

Are alternative investments right for your portfolio? Allworth Partner Advisor Victoria Bogner, CFP®, CFA, AIF®, helps you answer the question.

Read Now
Allworth Financial logo
Talk with an Advisor Contact us
  • Services
    • Wealth Management
    • 401(k) For Employers
    • For Airline Employees
  • Working With Us
    • Why People Work With Us
    • Office Locations
    • FAQs
    • Our Fees
    • Client Login
  • About Us
    • Advisors
    • Our Leadership
    • Advisory Firm Partnerships
    • Allworth Kids
    • Careers
    • Form CRS
  • Insights
    • Workshops & Events
    • Podcasts
    • Financial Planning
    • Investment Management
    • Tax Planning

Newsletter

Subscribe to receive monthly insights from our Chief Investment Officer, and be the first to know about upcoming educational webinars.

©1993-2025 Allworth Financial. All rights reserved.
  • Privacy Policy
  • Disclosures
  • Cookie Preferences
  • Do Not Sell or Share My Personal Information

Advisory services offered through Allworth Financial, a Registered Investment Advisor

Securities offered through AW Securities, a Registered Broker/Dealer, member FINRA/SIPC. Check the background of this firm on FINRA's BrokerCheck.

HMRN Insurance Agency, LLC license #0D34087

Rankings and/or recognition by unaffiliated rating services and/or publications should not be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if Allworth is engaged, or continues to be engaged, to provide investment advisory services.  Rankings should not be considered an endorsement of the advisor by any client nor are they representative of any one client’s evaluation or experience. Rankings published by magazines, and others, generally base their selections exclusively on information prepared and/or submitted by the recognized advisor.  Therefore, those who did not submit an application for consideration were excluded and may be equally qualified.

1.  Barron’s Top 100 RIA Firms: Barron’s ranking of independent advisory companies is based on assets managed by the firms, technology spending, staff diversity, succession planning and other metrics. Firms who wish to be ranked fill out a comprehensive survey about their practice. Allworth did not pay a fee to be considered for the ranking.  Allworth has received the following rankings in Barron’s Top 100 RIA Firms: #14 in 2024, #20 in 2023 and #31 in 2022. #23 in 2021, #27 in 2020.

2.  Retention Rate Source: Allworth Internal Data, FY 2022

3 & 9.  NBRI Circle of Excellence and Best in Class Ethics:  National Business Research Institute, Inc. (NBRI) is an independent research firm hired by Allworth to survey our customers. The survey contains eighteen (18) scaled and benchmarked questions covering a total of seven (7) topics, and a range of additional scaled, multiple choice, multiple select and open-ended question and is deployed biannually. NBRI compares responses across its company universe by industry and ranks the participating companies in each topic. The Circle of Excellence level is bestowed upon clients receiving a total company score at or above the 75th percentile of the NBRI ClearPath Benchmarking database.  Allworth’s 2023 results were compiled from 1,470 completed surveys, with results in the 92nd percentile. Allworth pays NBRI a fee to conduct the survey.

4.  As of 1/1/2025, Allworth Financial, an SEC registered investment adviser and AW Securities, a registered broker/dealer have approximately $26 billion in total assets under management and administration.

5.  Investment News Best Places to Work for Financial Advisors:  Investment News ranking of Best Places to Work for Financial Advisors is based on being a United States based Registered Investment Adviser with a minimum of 15 full or part-time employees working in the United States and having been in business for over a year.  Firms who meet Investment News’ criteria fill out an in-depth questionnaire and employees were asked to take part in a companywide survey.  Results of the questionnaire and employee surveys were analyzed by Investment News to determine recipients.  Allworth Financial did not pay a fee to be considered for the ranking.  Allworth Financial has received the ranking in 2020 and 2021.

6.  2021 Value of an Advisor Study / Russel Investments

7.  RIA Channel Top 50 Wealth Managers by Growth in Assets:  RIA Channel’s ranking of the Top 50 Wealth Managers by Growth in Assets is based on being an active Registered Investment Adviser with the Securities and Exchange Commission with no regulatory, criminal or administrative violations at the time of the ranking, provide wealth management services as their primary business and have a two year growth rate of 30% based on assets reported on Form ADV Part 1 at the time of ranking.  Allworth Financial did not pay a fee to be considered for the ranking.  Allworth Financial received the ranking in 2022.

8.  USA Today Best Financial Advisory Firms: USA Today’s ranking of Best Financial Advisory Firms was compiled from recommendations collected through an independent survey and a firm’s short and long-term AUM growth obtained from public sources. Allworth Financial did not participate in the survey, as self-recommendations are prohibited from consideration, and all surveyed individuals were selected at random. Allworth Financial did not pay a fee to be considered for the ranking. Allworth Financial received the ranking in 2024.

Tax services are provided by Allworth Tax Solutions, an affiliate of Allworth Financial. Allworth Financial does not provide tax preparation services or advice.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.

Important Information

The information presented is for educational purposes only and is not intended to be a comprehensive analysis of the topics discussed. It should not be interpreted as personalized investment advice or relied upon as such.

Allworth Financial, LP (“Allworth”) makes no representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of the information presented. While efforts are made to ensure the information’s accuracy, it is subject to change without notice. Allworth conducts a reasonable inquiry to determine that information provided by third party sources is reasonable, but cannot guarantee its accuracy or completeness. Opinions expressed are also subject to change without notice and should not be construed as investment advice.

The information is not intended to convey any implicit or explicit guarantee or sense of assurance that, if followed, any investment strategies referenced will produce a positive or desired outcome. All investments involve risk, including the potential loss of principal. There can be no assurance that any investment strategy or decision will achieve its intended objectives or result in a positive return. It is important to carefully consider your investment goals, risk tolerance, and seek professional advice before making any investment decisions.