Looking back at my short 34 years, several moments in time stand out that I can remember like they were yesterday. Most of those memories are wonderful experiences that I often think about. Just this week, I came across a video my wife took of my oldest son rolling over for the first time. My grandfather sent me a newspaper clipping this week from when I was a child at the fair and won a bunch of Scooby Doo stuffed animals. Other times there are negative memories that come to mind. One memory in particular was the October stock market crash of 1987, known as Black Monday.

On that Monday morning, I was riding with my dad in our blue Chevy Astro van heading to Defiance. My dad had always been a fan of talk radio and that day he was glued to the AM dial. It wasn’t until a year later that Dad sat me down and started teaching me about investing in the stock market, so I was just annoyed I couldn’t play my new Bon Jovi cassette tape. I remember seeing the concern on my dad’s face as he listened to the stock market collapse By the end of the day, the Dow Jones had dropped 22.61 percent, its biggest one-day percentage decline in history. To my dad, that day seemed like a financial disaster.

Twenty-three years later, looking back at that moment, I should have just pushed in the cassette tape and Bon Jovi’s song “Livin’ on a Prayer” might have made him relax a bit. As the Retirement Guys, we realize the impact losing money can have on retirees. It could mean outliving their income and potentially running out of money.  We meet with people all of the time, some are worried about the stock market and others are focused on what’s really important to them.  If you are concerned about the stock market and the economy, we’d like to share a couple of simple steps with you so when the next crash happens, you too can just turn up the music and get back to enjoying the ride.

Step one: Have a certain amount of safe money.  Not only does it make sense for investors to be safer when they get older, it can also buy them time, time not to panic. If investors have an account not exposed to stock market risk, they can take withdrawals from the safe account while the stock market is down, giving the stock market accounts time to recover. For many investors who pulled their money out of the stock market after the 87 crash, they missed out on the gains in the stock market in the next decade to come.   Once the crash happens, it could be too late to become safe.

Step two: Don’t follow the crowd.  Driving to an appointment this week, I went past a clothing store that had a sign in the window that said, “We Buy Gold.” For me, that is a pretty clear sign that now isn’t the time for us to advise our clients to buy a bunch of gold investments. History has shown time and time again, the stock market and the economy can be very punishing to people who chase the hot trends.  Remember technology stocks? How about how easy it was to make money in real estate? Just the same, allowing emotions to get in the way and selling out after a large loss may not make sense either.  Instead, ignore everyone else and make decisions only after reviewing a well thought out plan of action.

Step three: Put money to work when something is super cheap. If investors take steps while things are going good to increase safe accounts, they can buy opportunities when things are bad.  Look for companies that are leaders in their industry and ones that stand out above the crowd. Believe in America and buy quality investments that should be able to weather the storm.

Taking these three steps may not make you the next Warren Buffett, but many of these principles are ones he follows. If you feel that you are not in control of your investments, but are happy to see your account statements have gone back up, then now might  be a good time, while prices are much higher than they were a few years ago, to get back in control before the next Black Monday occurs. Remember it is when, not if. Don’t take a backseat to financial planning when everything seems to be going well.

For more information about The Retirement Guys, tune in every Saturday at 1 p.m. on 1370 WSPD or visit www.retirementguysradio.com. Securities are offered through NEXT Financial Group Inc., Member FINRA / SIPC.  NEXT Financial Group Inc. nor its representatives provide tax advice.  The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537.

Tags: Bon Jovi, Retirement Guys, Warren Buffet

This entry was posted on Thursday, October 21st, 2010 at 3:01 pm and is filed under Retirement Guys, Toledo Business Link.
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Cole Kwapich, 10, the son of Brian and Christen Kwapich of Springfield Township, will have his wish come true when he meets his idol, singer Jon Bon Jovi, this summer. Cole, who suffers from end stage renal disease, is receiving his wish from the Make-A-Wish Foundation.

When the fourth grader at Crissey Elementary School received word his wish had been granted, he said, “I’m happy and psyched” and that the trip will be a “sweet one.” When he first heard Bon Jovi on disc he said, “Dude, this is impossible, who can sing this well? He’s an awesome singer and the best in the world.”

The Kwapich Family

When he meets his idol, Cole plans on shaking Bon Jovi’s hand and saying to him, “Are you the legendary Bon Jovi? I’ve been looking forward to meeting you all my life.” When asked why he didn’t choose going to Disneyland, he responded “you can go to Disneyland or Nickelodeon anytime, but you can’t always see Bon Jovi.”

Bon Jovi, 48, has been performing since the early 1980s and is no stranger to helping people and charities. He is the founder of the Jon Bon Jovi Soul Foundation, a nonprofit dedicated to “bringing about positive change and helping the lives of those in need one soul at a time,” according to its website.

The Northwestern Ohio Make-A-Wish Chapter located at 405 Madison Ave. in Toledo will coordinate Cole’s out-of-state trip to meet Bon Jovi. Kimberly Ray, wish manager, said, “We grant between 75-80 wishes a year. Each week there are children being qualified and every qualified child will receive a wish.” Ray said children “are referred by their parent’s medical professional or sometimes the child themselves. They are qualified by their doctor.”

Christen said “we waited until Cole was older before contacting Make-A-Wish so he could decide what wish he wanted.”  Brian said “the initial request was made on January 29 and once the doctors approved everything and forms were completed it went fast. Cole was assigned two volunteers and they came out to the house and interviewed him.”

Cole was born without functioning kidneys and spent most of his infant and toddler years in and out of the University of Michigan’s C.S. Mott Children’s Hospital in Ann Arbor.  He has undergone 24 surgeries. When he was 20 months old and able to accommodate an adult kidney, his uncle Christopher Kwapich was a match and donated a kidney to Cole. Christen said, “Cole has had two bouts of rejection and gotten through them and reversed both rejections. The last rejection was a year ago.”

Brian said, “Cole takes seven different medications a day and some are twice a day.”

When asked how he is feeling physically, Cole said, “pretty nice and comfortable and when I grow up I’m going to be a rock star like Bon Jovi, have a rock band and a RV and travel to L.A. because that’s where you go to start your career.”

Ray said if anyone knows of a child who may qualify for the program, call her at (419) 244-9474 or e-mail her at kray@northwestohio.wish.org.

Tags: Bon Jovi, Make-A-Wish

This entry was posted on Thursday, May 6th, 2010 at 1:58 pm and is filed under Community, Philanthropy.
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