Broker Check

March 2021 Financial Focus

March 01, 2021

At Adaptive Wealth Partners we understand that the word volatility brings on a negative emotional response to many investors, this response leads one to question the actions that they are taking and to make poor short-term financial decisions. The good news is that we have done the research on downturns and this response can be dealt with before the first signs of any downward movement in the market. In fact, when the markets dropped in February and March of 2020 our clients showed exactly how to deal with volatility, staying invested in their high-quality portfolios, keeping their eye on their long-term goals and taking advantage of the opportunity and adding to their portfolios.

Investors are more likely to achieve their goals when they understand that the media has a negative influence on their likelihood to reach their long-term financial goals. When you have the confidence in THE PLAN and your investment portfolio you will have the confidence to add to your investments in time of opportunity by taking advantage of our 10% down 10% strategy using funds set aside in your extra-spare tire fund that we have set up for you.

When talking to other financial advisors and firms, how often do they talk about downturns in the market and how to be prepared to take advantage of them?

When we did our research on downturns, we know that in an average four-year period you should expect your portfolio to have one year where it drops in value and three years where it goes up in value. Many other firms and advisors only discuss the upside and how much you will make, they tend to ignore the 25% of the time your portfolio will go down in value and they definitely don’t coach their clients to not only be prepared, but also to take advantage of the downturn.

We know there are opportunities in every market condition, and you can significantly increase the likelihood of reaching your goals by being prepared and willing to take advantage of them.


We have created a guide to access your tax forms, simply follow this link: Accessing your 2020 Tax Documents – Adaptive Wealth Partners. If you need additional help or have further questions give us a call.

How to Talk to Your Kids and About Money

Opening up and starting conversations about how to handle money and finances with your kids may seem overwhelming, but it doesn’t have to be. As a parent, it is your role to serve as a positive influence in their lives to get them on the right financial track. Here are five things to consider as you embark on helping your children understand the importance of being responsible with their finances.


Start discussing money with even the littlest ones by including them in everyday activities, such as grocery shopping or budgeting. This allows money to become a tangible concept and not some abstract thing that they cannot see. You can also ask them questions such as “We have 5 dollars to buy a treat, would you pick ice cream or cookies?”. These types of conversations help children to understand that there are trade-offs to any decision, and that money is not infinite.


Being honest with your kids is a great first step to opening the door to discussing finances. You can share the family budget for items like groceries or entertainment and explain to them of this limit when they ask for items that don’t fit within it.

Additionally, if there are things in your financial past, such as going into debt, that you are not proud of, share that with your kids. Honest moments with your kids are very valuable and will help build trust. Keep in mind that the more open and honest you are with your kids, the more open they will be with you, so being truthful about your own finances is a great place to start.


Encourage your kids to consider what is important to them for their future. Start by asking questions such as “Do you want to own a house or rent when you grow up? or “What splurges would you like to be able to make when you grow up (travel, cars, etc)?”.

Helping kids to visualize what they want for the future is a crucial component to talking to kids about money and financial goals. Talking about what they value and hope to have in their future allows them to take a long-term view, which is critical to the concepts of saving, budgeting, and paying down debts.


As a family, talk about your budgeting methods and set specific goals together. For instance, perhaps you set a weekly grocery limit of $150. Take your children to the store with you when you shop and have them help look for sales or clip coupons to keep your cart under budget. Involving your children however you can with the family finances is a great hands-on way to educate them and give them a chance to see real-life examples of how their financial habits will impact them in the future.


There may be certain financial topics that you are not as knowledgeable about, and that’s okay! Take the opportunity to learn with your kids. Showing your kids that you are interested in growing your understanding of financial topics will heighten their interest in it as well.

Talking to your kids about money may seem like a daunting conversation to have if you don’t know how to approach it properly. However, broaching the subject sooner rather than later will reap many benefits for you and your kids. Ultimately, you want your kids to have the knowledge and skills they need to handle their own finances responsibly as they grow up. As a parent, it’s your job to instill this knowledge in them and to open the door to an often taboo subject so that you can help them get off on the right foot with their finances. Financial habits are formed young, so it’s critical that you start early and start the conversation today. Make your kids feel comfortable to talk about finances with you by using these tips.

March 2021 401k Recommendations

With the downward movement of the market in the last week of February, we have moved some assets from money market investments into the equity side of the portfolio. We have also adjusted our portfolio’s investment categories to give them greater alignment with the investment options in most 401k plans.

The 2020 IRA account contribution deadline is April 15, 2021, and if you are a business owner who has a 401k for your company, you can add a cash balance plan for 2020 through the tax extension filing deadline of your business, this could allow you to gain an extra tax deduction and put additional funds into your retirement accounts.

If you would like us to match your 401k investment options with our recommendations, give us a call or you can fill out the form below and include your 401k statement and investment options. We will contact you with the results.

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CONSERVATIVE: A Conservative investor values protecting principal over seeking appreciation. This investor is comfortable accepting lower returns for a higher degree of liquidity and/or stability. Typically, a Conservative investor primarily seeks to minimize risk and loss of principal.

MODERATE: A Moderate investor values reducing risks and enhancing returns equally. This investor is willing to accept modest risks to seek higher long-term returns. A Moderate investor may endure a short-term loss of principal and lower degree of liquidity in exchange for long-term appreciation.

Moderate Growth: A Moderate Growth investor values higher long-term returns and is willing to accept considerable risk. This investor is comfortable with short-term fluctuations in exchange for seeking long-term appreciation. The Moderate Growth investor is willing to endure larger short-term losses of principal in exchange for the potential of higher long-term returns. Liquidity is a secondary concern to a Moderate Growth investor.

Growth: Growth investors typically invest in equity investments. With a focus on growth stocks—that is, young or small companies whose earnings are expected to increase at an above-average rate compared to their industry sector or the overall market.

The information provided here is for general information only and should not be considered an individualized recommendation or personalized investment advice. The strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All investing involves risk including loss of principal. No strategy ensures success or protects against loss. Past performance is no guarantee of future results. There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk. The opinions expressed and material provided are for general information, and they should not be considered a solicitation for the purchase or sale of any security.


Entering the end of the first quarter in 2021 we all must remain optimistic of continued rollout of vaccines for the pandemic and continue to be kind to one another. As our economy and world has shifted over the past year we will emerge in a new version, that will have its own unique opportunities. If any of you have family or friends that would like to start using our financial planning software, feel free to share the following link, Adaptive Financial Planning. We look forward to continuing to partner together with you to achieve your goals.