Understandably, the general public is feeling great uncertainty, and has many questions about what COVID-19 means for the economy and their lives overall.

There is still concern among our clients, but not nearly as much as at large. In speaking with all client families over the past six weeks, I hear so much optimism. Our clients understand that our portfolios are still down this year, but that we are faring considerably better than the market as a whole.

This is because, as part of our long-term strategy, we put money to work when the markets were down, so we benefitted from the rise in the market after its lowest point, which was March 23rd.

I do not believe that the road to overall economic recovery will be a smooth one. There are many unanswered questions as to what life will look like by even June or July, as it looks like the Ontario government intends to cautiously start opening the economy. Addressing a major area of concern, the federal government has announced commercial rent relief of up to 75% for up to three months, in the form of forgivable loans to small- and medium-sized businesses, and this is a positive sign.

WHEN THIS HAPPENS
There is going to be further volatility in the market. I want to stress that we are ready for it. Just as we were before the crisis, we are positioned for bumps in the road. Specifically, we have kept powder dry: we have cash and short-term fixed income on hand, which we will use to capitalize prudently when desirable companies become available at attractive prices. Many clients have been sending us additional funds to take even further advantage.
 
We need to keep in mind that what we are going through in the markets is uncomfortable, but it is also part of the process – one that is setting us up for above average returns going forward.

IT’S ALL ABOUT THE PLAN
The big picture and the bottom line is this: our clients’ wealth, retirement and other future plans are still very much on track, because we have always made a customized financial plan the centrepiece of our approach. That plan is driven by what is most important to our clients, because the better we understand their priorities, the better portfolio managers we can be. For example, none of our clients will have to sell stocks for at least the next five years, and in many cases longer, to fund their retirement income.
 
It’s very important to me that you know this: we are always available to have planning discussions with you. During the pandemic, I and my team of RBC experts have remotely conducted many of these meetings, and clients have found that they tend to be very reassuring – that everything is on track, because we look at the long term, which overall is a good news story. If you would like to have a planning call, please do not hesitate to let me know. If you are experiencing some uncertainty now, a review of your planning should alleviate any concerns.

The pandemic has also inspired many clients to be more focused on their estate planning needs, including insurance and wills. If you would like an updated review of these or any other planning needs, just let us know.

WE ARE HERE TO HELP
In the April edition of Marche Monthly, I shared that many of you have expressed concern for the financial circumstances of your friends, family members and colleagues, and in some cases the institutions and foundations they are involved with. I have since spoken with a number of people you have referred to me, and we have had many constructive conversations and positive outcomes.
 
Please know that my team and I will be happy to speak to anyone and provide a second opinion on a completely confidential, no-obligation basis. And of course, thank you.
 
THE PLAN IS WORKING
Please take care of yourselves. Self-isolation and social distancing are working. I have seen some funny emails and memes circulating, as I’m sure you have. It’s not always easy, but it is so important to maintain a sense of humour, and take the best that we can from this unusual experience. And of course, gratitude for our health care and other front line workers always feels good.
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We don’t speak jargon. We’re all about uncomplicating your life, so we speak plain English. If there is someone you care about – someone who would appreciate this simple and straightforward approach – please feel free to share this message with them or put us in touch.

Want to discuss any aspect of this month’s blog, or any other issue on your mind? Have a story idea? I am always happy to receive your call, email or visit.

Tyler Marche, MBA, CFP, FCSI
Your life, uncomplicated
tyler.marche@rbc.com
1-416-974-4810
www.tylermarche.com