VIRUS Awareness

Dear Reader,

Tusk is the culmination of family values, education, ambition, and drive to succeed. Personal financial success, and failure, brought awareness, which drives our message of financial security and stability. 

When TUSK prevents a hardship, or make a bad situation bearable, we know we have succeeded. Its with care I write the following, and based on personal opinion and facts. Our purpose, financial risk awareness, I believe resonates today , even more than yesterday. 

There  has never been a bad time for safe money, and planning. I write this to bring awareness to the following points of financial risk during these new, and trying times. We are in uncharted territory globally. I have seen in the past 10 days, social greeting has seen immediate change to century old culture and customs. In only a few weeks, we now have to be careful  of  even a hug. Shake hands, everyone including my father and the guys at the at the country club, are  bumping elbows. 

I spent my childhood perfecting the hand shake. 

We offer the following practical advice, and comments only to bring awareness to a stark reality, that i know we will bounce back from.

In no specific order, I wish to bring the following to light, while we encounter new, global, economic threats to all of us.

Investments- Reallocate away from risk with life stage. Some times you need to take some chips off the table.  The closer to retirement the less you can afford to lose. Guarantee your income, for life. Market Portfolios should be actively managed through fiduciary relationships with RIA. Income secured from guaranteed and safe sources

Property Liability Insurance- Read your policy, check limits. September 11 terror attacks were specifically EXCLUDED from certain insurance through language of policy, as act of war. Verify your peril coverage and make sure it still fits. Today I reviewed a commercial insurance policy, for an event. $3,000,000 of coverage, but if someone were to get sick, the medical would be capped at $1,000. Yes , $1,000. 

Business in Decline - Do not catch a falling knife and spend down your retirement to try and save a business. Limit your risk. September 11, 2001, led to years of economic downturn and change. No "advisory" could predict what was to happen next. Preserve your nest egg. Money will be made available  through SBA and banks, but remember, you will need to make more to cover your debt. Protect your nest egg. I can share many stories, and if your not self insured for the interruption, and are not with insurance, send us a note. Financial advice in bad times can be more complex than in good times.

 When will we go back to "normal"? 

Critical and chronic illness planning- how will you pay for it, who will administer care, and where. No one gets to pick what sickness occurs, or for how long. Health insurance is a fundamental requirement for financial success.  Seniors should have a long term care plan. This insurance product is reducing benefits, their is free and low cost strategies available. Products, documents and plans.

Estate- Don't leave a mess.  Review documents and update accordingly. Do people depend on you? Life insurance is a protective measure and should fit your budget.  Wills contain medical directives. 

Income- protect it if you can not afford to lose it. Short term and long term disability can happen. No one asks for injury or illness. 

This very simplistic overview.  Learn from experience, dial in risk with a level your comfortable with, but recognize your information is only as good as the source. 

Awareness is the driver of TUSK life. My opinions are my own, and we, are risk adverse. 

I wish everyone the best of luck and health.

Send a note or drop a line, we are not going anywhere for a while, and may as well consider our business model. 

Sincerely,

Daryl Arno Kutner

I am concerned that the financial impact on us may be similar if not greater to an event that took lives.I do not suggest a comparison of virus versus act of terror, and limit my observation to market response , and it is of my opinion that this may hit harder, and probably will not be the last time a global event could effect us. 

Event: 9/11

Date: September 11, 2001

Economic Impact

The 9/11 attacks had an immediate negative effect on the U.S. economy. Many Wall Street institutions, including the New York Stock Exchange, were evacuated during the attacks. On the first day of trading after the attacks, the market fell 7.1 percent, or 684 points. New York City’s economy alone lost 143,000 jobs a month and $2.8 billion wages in the first three months. The heaviest losses were in finance and air transportation, which accounted for 60 percent of lost jobs. The estimated cost of the World Trade Center damage is $60 billion. The cost to clean the debris at Ground Zero was $750 million.*

*History Channel 

2020 Corona Virus

What you need to know

• The numbers: The novel corona virus has infected more than 182,400 people and killed over 7,100 worldwide, according to Johns Hopkins University. The number of deaths outside China have now surpassed those inside.

• In the US: The White House has advised people not to gather in groups of more than 10, as US cases passed 4,400, with at least 86 fatalities.

• Worldwide restrictions: Millions are under lock down in Europe as some Asian countries close schools and non-essential businesses, and curb travel.

Consider 9/11 - USA 

non fatal injury      25,000 People 

Fatalities -                              2996 People

Corona Virus - worldwide

non fatal is 184,400 

Deaths reported as of 3/16/2020:  7100

USA Deaths reported at 86 currently 

The stock market :

Monday’s losses put the Dow down 31.7% from its all-time high and the S&P 500 and Nasdaq more than 29% below their records last month. The Dow fell to its lowest point since 2017.

The Dow’s drop was the worst decline since its “Black Monday” crash three decades ago when it fell more than 22%. The drop surpassed its 9.99% tumble last Thursday. It was also the Dow’s third-worst day ever; it dropped more than 13% in late 1929.

*CNBC  march 15, 2020

CNN march 16 2020

• The Dow recorded its worst one-day point drop in history.

• The S&P 500 finished down nearly 12%. The Nasdaq Composite ended down 12.3%.

March 21, 2020

Headline from CNN

• The numbers worldwide: More than 272,000 people have contracted the virus and at least 11,310 have died, according to a tally by Johns Hopkins University
• US death toll rises: More than 250 people have now died from the novel corona virus in the United States

We have  concern and care for all, and wish you best of  health.

-TUSK