“Adrian, should I be worried?”
That’s how Janet started our call, she went straight to the point.
She’d been catching up on the news between seeing patients, and saw yet another story about tariffs being tossed around like confetti. After last year’s terrific returns for her investments, seeing them come down, even from historic highs, was a queasy feeling.
“Adrian, will this whole tariff mess tank the markets? Does this mean I have to push back my retirement?”
Over the decades I’ve helped Canadian doctors with their finances, I’ve seen this situation many times. Investors have a combination of curiosity and concern, mixed with a hint of “should I be selling something before it’s too late?”
I smiled. Because I get it.
(Isn’t it weird how we always still have facial and hand expressions, even when the other person can’t see us on the phone?)
“Janet – you know what’s weird? I kind of like markets when they’re down dramatically.”
She paused. “You what??”
“Down markets are when long-term investors make their money,” I said.
“I know they feel awful, but they’re actually filled with opportunity. When quality stocks go on sale because everyone else is fearful, my clients can buy great businesses at a discount. Tariffs, inflation, election headlines – they’re noisy, but they don’t change the fundamentals of your long-term goals.”
“I get that,” she said slowly. “But I’m still losing money.”
“Only if you sell,” I reminded her.
“Janet – you know what’s weird? I kind of like markets when they’re down dramatically.”
“This isn’t like selling your house during a bad year and locking in the loss. This is more like renovating your dream house when the market is temporarily undervalued. We don’t need everything to go up all the time. In fact, we want these dips—they’re the moments that separate investors from speculators.”
She was quiet for a beat.
“Is this like when you spoke about the 5 buckets you have for your retired clients?”
“Exactly! If you were retired today and worried about the markets, we’d pull what you need from your guaranteed investments that we’ve set aside for times just like this.
You’re completely covered by the 5 Bucket Plan we’ve set up for you.
You can sleep easy knowing where your income is coming from, and with your discretionary investments – we move from being fearful to being opportunistic in times like this. We hold steady, or even go a little more aggressively to pick up great investments at a discount.”
“I guess I felt like I needed to DO something,” she said.
“I like a plan that seems proactive, not fearful.”
And then Janet laughed. ” And you’ve just reminded me that I already have a plan in place!”
She paused once more, and said, “Okay, Adrian – now I’m excited! What’s on sale for us to buy?”
Remember.
Up markets are easy to love.
Down markets, though?
That’s where the magic happens!
Enjoyed this article? I’d love to hear from you! I’m always interested in hearing about the unique financial situations doctors have. Send me a note! And make sure to check out my Amazon bestseller, The Doctor’s Handbook: 5 principles of wealth you weren’t taught in med school.
