Subscribe
  • News
    • Local
    • Regional
    • Business
    • Real Estate
    • Outlaw Partners
  • Arts & Entertainment
  • Opinion
  • Sports
  • Yellowstone
  • Events
Menu
  • News
    • Local
    • Regional
    • Business
    • Real Estate
    • Outlaw Partners
  • Arts & Entertainment
  • Opinion
  • Sports
  • Yellowstone
  • Events

Enjoying the Ride: COVID, cash and ‘DCA’

in Business, Health
Enjoying the Ride: COVID, cash and ‘DCA’
Outlaw Partnersby Outlaw Partners
April 14, 2020

By Scott Brown EBS CONTRIBUTOR

I began my career as a financial advisor more than 25 years ago. My objective was simple: help clients reach their financial goals.

Throughout my career, I’ve learned that financial goals aren’t based on arbitrary numbers like having $1 million before you retire. Instead, personal financial goals are driven by what’s most important in life to those investors, including the health and financial well-being of spouses, children, grandchildren and employees. 

Article Inline Ad Article Inline Ad Article Inline Ad

In most cases, these goals also include philanthropy, spirituality and the pursuit of other interests like fitness, travel and hobbies; in other words, the pursuit of happiness. So, I partner with people to assist them in making prudent financial decisions so they can enjoy life and make life more enjoyable for those they love. This is the focus of my column, “Enjoying the Ride.”    

As everyone is acutely aware, COVID-19 has created a global shock to our way of life, the capital markets and the global economy. People around the world are suffering from the disease itself, its economic repercussions and its long-term societal impacts. Nonetheless, I have five reasons to be optimistic about the economy and capital markets.

First, our economy was extremely strong when the market selloff and economic slowdown began. Second, the Federal Reserve reacted with a swift and robust response. Third, Congress passed the CARES Act on March 27. Fourth, I believe we’re beginning to win the battle against this invisible enemy. And finally, after witnessing the emergency response failures at the federal, state and local levels, we’ll be better positioned to respond to the next crisis. As such, I expect a strong V-shaped recovery for both the U.S. economy and capital markets within 12-24 months.

Now, let’s shift gears and quickly review two strategies of a sound financial plan.

The first strategy is having an appropriate cash reserve, which can provide you with liquidity in the event of an emergency or when faced with an opportunity. It’s similar to backstops behind batters in baseball.  The amount you hold in reserves depends on your relationship status, employment status and whether you own a business or have dependents.

A rule of thumb is having a cash reserve between three and 12 months of net expenses. In volatile and uncertain times, having a cash reserve allows you to cover months of lost employment income, “buy the dip” in the market, lend money to friends in need or make contributions to philanthropic organizations.

The second strategy is dollar-cost averaging, or DCA. A DCA is a systematic savings plan that over time can help offset market volatility and allow for a lower average-per-share cost of a stock or mutual fund. A perfect example of a DCA is investing in a 401(k) plan. DCA plans remind me of climbing a mountain:  each step you take or hold you grab ultimately gets you closer to the summit.

If you’re already using these strategies, congrats! If not, plan to implement them soon. I hope you find this information helpful and I trust you and your loved ones stay well and prosper during these challenging times. As always, before you embark on your next life adventure, set your sites on your goals and keep enjoying the ride!

Scott L. Brown is the cofounder and managing principal of Shore to Summit Wealth Management. His wealth management career spans more than 25 years and he currently works and lives in Bozeman with his wife and two sons.

Outlaw Realty Outlaw Realty
Outlaw Realty
ADVERTISEMENT

Listen

Hoary Marmot Podcast

Joe Borden & Michele Veale Borden

Lastest Episode
See More Episodes

Upcoming Events

May 17
7:30 pm - 9:00 pm Event Series

A Spiritual Awakening: Verdi, Simon, Ives

May 18
2:30 pm - 4:00 pm Event Series

A Spiritual Awakening: Verdi, Simon, Ives

May 20
5:30 pm - 8:30 pm Event Series

American Legion Bingo

May 21
7:00 pm - 9:00 pm

“On the Face of it,” an original Big Sky Community production

May 23
7:00 pm - 9:30 pm Event Series

Trivia at Waypoint

View Calendar
Event Calendar

Related Posts

The Bozeman boom
Business

The Bozeman boom

May 15, 2025
Let’s Talk About Mental Health: Creative outlets 
Health

Let’s Talk About Mental Health: Creative outlets 

May 9, 2025
Live Better: Your six-week training program to run strong this summer
Health

Live Better: Your six-week training program to run strong this summer

May 8, 2025
Making it in Big Sky: Hey Bear
Business

Making it in Big Sky: Hey Bear

May 8, 2025

An Outlaw Partners Publication

Facebook-f Instagram X-twitter Youtube

Explore Big Sky

  • About/Contact
  • Advertise
  • Publications
  • Subscriptions
  • Podcast
  • Submissions

Outlaw Brands

  • Big Sky PBR
  • Hey Bear
  • Mountain Outlaw
  • Outlaw Partners
  • Outlaw Realty
  • Plan Yellowstone

Copyright © 2025 Explore Big Sky | Terms of Use | Privacy Policy | Your Privacy Choices

No Result
View All Result
  • News
    • Regional
    • Business
    • Outlaw Partners
  • Yellowstone
  • Arts & Entertainment
  • Sports
  • Opinion
  • Real Estate
  • Events

©2024 Outlaw Partners, LLC. All Rights Reserved.

Explore Big Sky Logo
  • News
    • Local
    • Regional
    • Business
    • Real Estate
    • Outlaw Partners
  • Arts & Entertainment
  • Opinion
  • Sports
  • Yellowstone
  • Events
Subscribe
Facebook X-twitter Instagram Youtube