Quarterly Commentary Q1 2020 & 2nd Quarter Outlook: “The New Normal”

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  • World economies already in slow growth mode and now many of them are pushed into a recession.

  • Stock valuations started the year at unprecedented levels and had further to fall when COVID-19 took over.

  • Bond yields were low at the beginning of the year but recessionary fears have driven yields down further.

  • The Coronavirus and the oil war between Saudi Arabia and Russia allowed for the largest drop in oil prices in history. At current oil price levels, many mid-level shale producers in Texas and other smaller oil companies will be driven out of the business. Suspicions are high that collaboration between Russia and Saudi Arabia are strategic to hurt America at a very vulnerable time. They very much dislike our oil independence.

  • Major business interruption and lifestyle changes occurred almost overnight due to the world pandemic.


  • At the end of Q1 2020, the Dow was down approximately 23%. It had fallen further and has experienced some rallies to the upside, but we believe this market will be susceptible to more volatility.

  • Not to belabor the bad, but the following represent the full quarter end returns

DJIA            Nasdaq     S&P 500     Russell 2000     Global Dow     Fed Funds    10-year Treasury

-23.20%     -14.18%    -20.00%     -30.88%             -24.04%            -1.50%          -1.22%

  • The market downturn was the 2nd most precipitous in Wall Street’s entire history. Literally, most fund managers said that they felt like it fell of a cliff. The only faster market decline was 1931.

  • The average recession is approximately 11 months. The 2008 recession was 18 months.

  • 5 things to invest in when a recession hits: core sector stocks with reliable dividends, real estate, precious metals, and yourself.


  • DON’T PANIC- It won’t change anything, and recessions are a necessary part of the cycle. Stocks were too high at the end of the year to find any desirable value.

  • Equity markets are already pricing in a recession; therefore, any good news about the slow down of COVID-19 or an end to the oil war will be a catalyst for equities. We already know that China, Russia, and Saudi Arabia cannot afford these oil prices.

  • GDP will undoubtedly pull back hard in the 2nd quarter. Estimates range from negative 17-35%. Additionally, unemployment will be a double-digit number, but exactly what it will be is harder to gage.

  • There will be an obvious dearth of demand and supply chain disruptions due to the pandemic in the second and most likely the 3rd quarter of 2020.


Turn off the television. Check in less often. We are minding the store, and no one has ever made any money by taking drastic action in these crises. Most of our clients have 3 to 5 years before they need every penny of savings. The financial markets should be well on the way to recovery by this time. After 2008, most of our investors recouped the previous 2007 and another 40% return five years later. Letting time take time is the key here.

Time is needed for Global Demand to return. Asia accounts for 10% of S&P500 companies’ revenues and China accounts for about 4% of overall revenues. Therefore, 2020 is going to be the year that we reposition by selling our laggards and buying great dividend generating companies that can be acquired at incredible values. We need the time to see Q1 earnings projections and future pro formas so that we can accurately access what is an opportunity and what is not.

Diversify- Maybe all of this volatility has taken you mentally and emotionally to a new place in your investment mindset. For example, maybe you have been positioned in 100% equities with your investments as far back as you can remember, and today’s environment combined with your current age has given you a new risk palate. Now is the time to speak with us and let’s get corrected risk and asset allocation targets for you. This is an active measure right now in which you can participate to take some control back. We welcome your calls at any time, and make no mistake, we are here to serve you. Stay calm and this too will pass.

Warm regards and please be well,

Zandy Campbell

A.G. Campbell Advisory, LLC is Fully Operational

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Zandy and I wanted to take a moment to re-assure our clients that we remain fully functional and operational during this unique time for our world. Our company has had contingency plans in place for many years, and we are fully prepared to operate from our home offices for as long as is necessary. While our office complex does remain open, we believe prudence dictates that we distance ourselves from the facility as much as possible for the foreseeable future. We will continue to receive U.S. Mail and other physical deliveries at our offices, but we will visit outside of normal business times during off-peak hours, so as to limit any possible exposure risk. We also believe it prudent to not have in-person or face-to-face meetings, and will instead restrict our activity to phone, email and other electronic means. PLEASE DO NOT HESITATE TO CONTACT US WITH ANY CONCERNS, WE REMAIN AVAILABLE FOR OUR CLIENTS EACH AND EVERY DAY.

Warm Regards

Mark Scott

Investment Commentary/Update: The Corona Virus – What to do?

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We’ve comprised a suggested list of “Dos & Don’ts” that you might find helpful during times when equity markets are temporarily out of favor with investors.


Do review your holdings and make sure you have sufficient near-term liquidity, perhaps 180 days. This way you are not forced to liquidate great companies at falling prices.

Do feel comfortable that your AGCA Team is constantly monitoring our clients’ portfolios, and is proactively taking steps to protect gains and provide liquidity, not only for current needs, but future opportunities as well.

Do know that these types of situations can generally impact investors for a period of 6 months or so. Also, be aware that the Department of Health & Human Services and the CDC have taken extraordinary safety measures to assure the safety of the American Public.

Do be aware that the stock market was trading at what may have been unrealistic multiples before the virus. The indices were prognosticating double digit growth next year. This is not realistic in a period when global growth is slowing. Therefore, the Coronavirus, among other factors, could be just the right catalyst that drives the equity markets to pullback 10-15%. Ultimately, there really is no way to get around this function of free markets.

Do stay informed, but no need to watch 365, 24/7 news. Remember, they have an ulterior motive to sensationalize for ratings.


Don’t panic. Nothing will change for the better if this is our demeanor. Now is the time when we help you make level headed, premeditated, and conscious decisions. Don’t join the indiscriminate selling, protect liquidity and profits if need be, but rest assured that there will be opportunities to invest any excess cash. If history after SARS, the Swine Flu, and other similar viruses have taught us anything, it’s that buy-and-hold does eventually persevere.

Don’t listen to people who say, “it’s different this time.” I have never seen that to be the case. Don’t imagine that this is definitely going to make us all die, impact all earnings, and wipe out GDP. It won’t. Remember, the CDC and the United States have restrictions in place to protect us.

Don’t allow yourself to be consumed by the never-ending news cycle. Stay informed, take appropriate precautions, and go about your normal routine. The market will sort itself out in time.

Don’t be fooled. While the market’s recent volatility is disconcerting to say the least, we’ve learned from past experiences that investors who remain disciplined have enjoyed very healthy growth after these types of “corrections.”

Don’t believe that there is nothing that can be done to help. Federal Agencies remain poised to act should it become necessary, and let’s not forget good old-fashioned ingenuity. Many people around the world are working very hard to combat the virus, and have made unprecedented progress.

Be wise, be calm, and call us with any concerns or questions.

Thank you,

Zandy Campbell

Q4 2019 Market Commentary

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Q4 2019 Market Review & Commentary

Happy New Year!!!

With 2019 closing with an S&P 500 index up 28.88%, the holidays were healthy and happy for many. The 2018 S&P 500 performance (down 6.24%) was no match for this past year. What changed? 2019 was punctuated by very favorable and low interest rates. On the whole, earnings have been good, and Phase I of the U.S./China Trade Deal seems to be in place. There were some bumps along the way in 2019, but the market demonstrated amazing resilience. Technology and Finance led the way throughout the year, more specifically, Semiconductors, Credit Services, Aerospace/Defense, Electronic Equipment, and Diversified Machinery, as well as a strong U.S. Consumer.

As we come barreling into 2020, earnings are the first and most meaningful measures of the health of the market. As companies begin to report their earnings with the banks in the fore, much of the focus on trade optimism in 2019 will likely be short lived. Our growth has slowed overall as evidenced by the Institute for Supply Management Manufacturing Index missing consensus estimates. There are contrary indicators to this number and the consumer is still very strong. Therefore, we believe that if you couple slower overall improving growth with this being an election year, a high single digit return for the market seems reasonable. Therefore, if you are allocated in U.S. stocks and companies with good long-term prospects and reputations, stay with them. It might also make sense to use this year as a chance to diversify a little and take some of the volatility out of your portfolio. We would not be overly aggressive buyers of the American markets at this time. Finally, keep some money dry for a rainy day, and be happy and feel joy that 2019’s supposed recession did not materialize!

As always, if there are any changes in your personal financial situation, please keep us apprised. We will be meeting with many people as the new year begins. Be well and God speed the plough.


Zandy Campbell

Q3 2019 Market Commentary

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3rd Quarter 2019 Commentary

 ·         The US-China trade dispute has dominated the headlines and volatility for this quarter. The Federal Reserve’s stance on interest rates gets a distant second. The gist of the ambiguity for stocks is slower global growth and tariff wars. Brexit is also very much in the background.

 ·         The Federal Reserve cut rates twice, and the ECB announced new strategies to stimulate the economy. US stocks achieved fairly small gains and pressures were felt in the commodity and financial sectors.

 ·         The Trump impeachment doesn’t help the macro view of the solidarity of the United States. In particular, China seems to want to see if “waiting Trump out” is a possibility, although talks are resuming.

 ·         Bond yields have declined precipitously over the quarter due to heightened global risk aversion.

 Our message is that we will conservatively take gains going into the fourth quarter and be satisfied with holding moderate amounts of cash. While there is this sense that so many things are awry, the truth is more to the contrary. The US has low unemployment, and growth is still placing GDP near 2%. The world is saying that we are going to have a recession in 2020. As you know, we don’t make those types of prognostications and believe a broken clock is right twice a day. That having been said, yes, things are in a slower growth mode than in the past few years. We believe that after 10 years of a bull market, we are bound to have some pullbacks. No market in our lifetime has ever been monodirectional, but we wouldn’t want our clients wasting their time trying to guess the top. Instead, we will pave the year end path with some realized gains and cash so that we live to fight another day.


Zandy Campbell

Q2 2019 Market Commentary

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2019 Half-Time: Climbing the Wall of Worry

 The first half of 2019 is complete, and the S&P 500 was up 17.35% for the period. This performance is the best first half since 1997. The PE multiple of the S&P is near 20 with Price to Sales Ratio at a little over 2X. Generally speaking, the fuel for the market this year has primarily been due to central bank policy. While we are extremely happy with this low interest rate environment, we believe that stocks will ultimately need to return to an environment where earnings are the drivers of upward movement.

The negatives for future GDP growth and earnings are of course the tariffs. Ultimately, higher tariffs do impact the United States in terms of earnings nearly as much as the Chinese. President Trump and President Xi have been “talking” about a trade deal for some time, and we believe that something possibly luke warm will be achieved. Let’s face it: the Chinese have enjoyed this huge trade imbalance for 30 years. The benefits of that trade tilt are not lost on President Xi, and I am fairly confident that he is not anywhere near really considering evening up that advantage. It is likely that Europe’s slow-down will continue to bleed on the United States which will result in slower growth and low interest rates. Therefore, it’s our opinion that the second half of the year will be fairly bumpy and very open to the vicissitudes of trade talk and rumors. Nevertheless, we believe that the U.S. equity markets continue to be the best alternative for our clients, and Federal Reserve Chairman Powell proves to be a “market-friendly” government official, which bodes well for the longer-term.

We believe that a year-end target of 3050 is very probable for the S&P 500 Index. This is simply to suggest a period of digestion and sideways movement in the second half. It wouldn’t surprise us if we have as much as a 10% pullback in this upcoming half, but we would use that as a buying opportunity. The central bank and geopolitical concerns will most likely dominate the rest of the year, but we encourage investors to stay long and even use market sell offs to add into favored equities.

Warm Regards,

Zandy Campbell

Attention: This transmission is neither an offer nor a solicitation of an offer to buy or sell securities. Please be aware that the confidentiality of Internet email cannot be guaranteed. Please do not include private or confidential information such as passwords, account numbers, Social Security numbers, etc. in emails to us. If you are not the intended recipient, you are strictly prohibited from disclosing, copying, distributing or using any of this information. Please contact the sender immediately and destroy the material in its entirety. Additionally, instructions having financial consequences such as trade orders, funds transfer, etc., should not be included in your email communications to us as we cannot act on such instructions by email.

Q1 2019 Market Commentary

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Christmas Eve 2018 was the deepest and darkest place that the market has been in quite some time. Officially, December 2018 was the worst December since 1931. The good news is that the market shook off all this gloom and doom prompted by an ambitious Federal Reserve. It’s a point of debate, but we think the Fed overdid the raising of interest rates in 2018. To be fair, Chairman Powell had a lot of ground to overcome in a short period. He was in a tough situation and still is.


January 2019 began with a roaring stock market recovery. The market was way oversold and came roaring back. The catalyst was that the Fed turned very dovish, and the China trade situation was showing signs of an agreement. Thus, the first quarter of 2019 was up 13.07% based on the S&P 500 index and recorded one of the best first quarters ever. We are all very lucky because first quarter earnings showed signs of falling off early in 2019. Subsequent to this bad data, the treasury yield curve inverted. When this phenomena occurs, it supposedly often heralds a recession within the next 12-18 months. We’ll see. Earnings for Q2 don’t look any better, but the U.S. / China optimism seems stronger than ever. Europe and Brexit are still in a state of chaos and in many ways make us feel pretty lucky. Politically, the hunt to still take down Trump continues, and yet, we are still slowly moving ahead.


Most of our accounts have between 13 and 20% cash, and we are happy about that fact. We have our eyes on several of our favorite investments and companies and will pounce on them when stock prices head lower. Currently, we are as invested as we want to be, and we are mainly helping clients with their tax work. With interest rates being so low, we still see the only overall place to be for the longer term is the stock market, and we are invested accordingly. For us to get a lot more bullish, the weakness in the global economy would have to recede. The ECB has held steady and promised not to raise rates until next year. Therefore, we are advocates of a more balanced portfolio buoyed by some short term bonds and cash. It’s always best to be cautious when markets have risen quickly and optimism seems the luxury of over-enthusiastic investors. Valuations are quite high and the market is facing some declining fundamentals.

10 Tips From The SEC’s Office of Investor Education and Advocacy

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Whether you are a first-time investor or have been investing for years, here are 10 tips from the SEC’s Office of Investor Education and Advocacy to help you in 2019.

  1. Check out your investment professional.

It is free and easy to check the background of an investment professional.  You can find details about an investment professional’s qualifications through the search tool on Investor.gov, the SEC’s website for individual investors.  Also, make sure to ask SALI whether your investment professional has been named in an SEC action.  If you need help, you can call our toll-free investor assistance line at (800) 732-0330 for help.

  1. Understand the power of saving and investing early by taking advantage of our tools.

If you are investing or saving toward a goal, or just want to learn about how your money can grow under various hypothetical scenarios, take advantage of our compound interest and savings goal calculators.  These calculators are great tools to help inform any decisions you make about your investing and saving.

  1. Know how to be a better investor.

Did you know that active trading and some other very common investing behaviors actually can undermine investment performance?  According to researchers, other common investing mistakes include focusing on past performance, favoring investments from your own country, region, state, or company, and holding on to losing investments too long and selling winning investments too soon.

  1. Diversify.

Diversification can help reduce the overall risk of an investment portfolio.  By picking the right mix of investments, you may be able to limit your losses and reduce the fluctuations of your investment returns without sacrificing too much in potential gains.  Some investors find that it is easier to achieve diversification through ownership of mutual funds or exchange-traded funds (ETFs) rather than through ownership of individual stocks or bonds.

  1. Consider fees.

It can be costly to ignore fees associated with buying, owning, and selling an investment product.  Expenses vary from product to product, and even small differences in costs can mean large differences in earnings over time.  An investment with high costs must perform better than a low-cost investment to generate the same return.  Read our bulletin on How Fees and Expenses Affect Your Investment Portfolio to learn more.

  1. Watch out for guaranteed high returns.

Promises of high returns with little or no risk are classic warning signs of fraud.  Every investment carries some degree of risk, and the potential for greater returns usually means greater risk.  Ignore so-called “can’t miss” and “guaranteed risk-free” investment opportunities –even if they involve HoweyCoins!  Better yet, report them to the SEC. 

  1. Be alert to affinity fraud and celebrity endorsements.

Affinity frauds target members of identifiable groups, such as the elderly, religious, or ethnic communities, or the military.  Even if you know the person making the investment offer, be sure to check out the investment and the person’s background—no matter how trustworthy the person seems.  You should also watch out for celebrity endorsements.  Just because you know the celebrity, doesn’t automatically make the investment opportunity being endorsed worthwhile. 

  1. Be careful when using social media as an investment tool.

Social media has become an important tool for investors, but also present opportunities for fraudsters to lure investors into a wide range of scams.  For additional information on ways to avoid fraud through social media, please read our bulletin on Social Media and Investing.

  1. Is the securities offering registered or exempt?

Any offer or sale of securities must be either registered with the SEC or exempt from registration.  Otherwise, it is illegal.  This has taken heightened importance with the advent of initial coin offerings as many of these offerings may involve securities.  Registration is important because it provides investors access to key information about the company’s management, products, services, and finances.  Always check whether an offering is registered with the SEC by using the SEC’s EDGAR database or contacting the SEC’s toll-free investor assistance line at (800) 732-0330.

  1.  Don’t forget about the world.

Events around the world may have a material impact on your investments.  For example, the United Kingdom is currently negotiating its exit from the European Union (often referred to as “Brexit”).  Brexit may have significant effects on the markets and companies in which you invest.  Please stay informed about Brexit and other world events as you consider your investment strategy.

If you have questions about your investments, your investment account or a financial professional, don’t hesitate to contact the SEC’s Office of Investor Education and Advocacy online or on our toll-free investor assistance line at (800) 732-0330.

The Office of Investor Education and Advocacy has provided this information as a service to investors.  It is neither a legal interpretation nor a statement of SEC policy.  If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in securities law.

The Super Rich Stress Test Their Financial Plans-and So Should You!

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The Super Rich (those with a net worth of $500 million or more) who have family offices typically engage a sizable lineup of professional advisors to help them create and implement financial plans. To help ensure those plans are both state-of-the-art as well as in line with their needs and wants, many of them regularly “stress test” these plans.


Here’s why you should join them in that effort—even if you’re not nearly as wealthy.

Asking “What if?”

Stress testing financial plans can be a very smart way to help make certain that the plan will deliver as promised. The fact is, financial plans that might look great on paper all too often prove to be much less impactful once they are implemented. It is not uncommon for there to be unintended consequences that can even derail one’s agenda.


At heart, stress testing is when you ask, “What if …?” about a variety of areas of a financial plan you have or are considering. When it comes to estate planning, for instance, a wealthy individual might ask questions like:


·         What will actually happen to my assets when I pass on?

·         How will my family be affected, precisely?

·         Who will be tracking the hard assets such as artwork and jewelry to make sure they go to the designated heirs—as opposed to vanishing?

·         Who is going to make sure my estate plan is being executed as it’s supposed to be?


To be effective and informative, stress testing should be done in a systematic manner. While there are some variations, the basic process starts by determining your goals. Your goals, any problems to be addressed and opportunities to benefit should be the driving forces behind the financial and legal solutions you employ.





Once you clearly understand your goals, you can evaluate the specific existing or proposed financial services or products. There are numerous ways to dissect and critically assess financial services and products:


·         Work the assumptions. A plethora of assumptions underlie all services and products. In stress testing, these assumptions are modified to determine how the solutions will work when a given scenario changes.

·         Evaluate alignment with goals and objectives. A solution might prove to work extremely well, but still not achieve the desired results. It’s essential to help ensure that the services and products will accomplish your goals.

·         Calculate cost structure. The intent here is to identify the best and most cost-effective solution possible. When calculating cost structures, all the expenses should be specified—including long-term costs.


Based on the stress test’s evaluation of the existing or proposed solutions, you might consider alternative products or services. It can be very useful to do side-by-side comparisons between the solutions being considered or currently used and such alternatives, asking questions like:


·         How do the assumptions compare?

·         How do the alternatives rate when it comes to potentially achieving my goals?

·         Which solutions are more cost-effective?


The end result of the process: recommendations. Based on those recommendations, there are five courses of action to consider taking:


  1. Stay the course. If the stress testing found the solutions being used or proposed to be on target and of high quality, the recommended action is to stay the course.


  1. Choose different solutions. If the stress testing finds what may be described as a system failure—the financial products being used are not going to achieve the desired results and might even blow up, for instance—the right move is to take a different course of action.


  1. Choose a different professional. If the solutions are appropriate but the professionals involved are really not up to the task of implementing them (or they charge too much money), it will usually make sense to switch to more capable and/or cost-effective experts.


  1. Modify the approach with the original professional. If the solutions can be made more powerful with only slight modifications, the best route is often to stick with the original professionals and have them make the minor changes needed.


  1. Continue stress testing. There are occasions when the individual or family chooses a professional to conduct a stress test and that professional is not up to the task. This comes out often clearly in the process or results of the stress testing. The only viable course of action is to select a different professional to conduct the stress testing.


Although stress tests are commonly used among the Super Rich, they should be a part of most people’s due diligence process when vetting financial plans, financial products and financial services. Frequently, stress tests uncover flaws in financial plans as well as better ways to achieve desired outcomes. For those reasons, stress tests will likely benefit a great number of people—especially business owners and their families, who generally have so much of their future financial security riding on one asset: their business.


Certainly there is a cost to stress testing estate, asset protection and income tax plans. That cost will depend greatly on the complexity of the testing involved and your situation. However, a stress test fee can be a whole lot cheaper than the costs—financially but also emotionally and psychologically—of a plan or solution that is fundamentally flawed or in conflict with your goals.


ACKNOWLEDGMENT: This article was published by the BSW Inner Circle, a global financial concierge group working with affluent individuals and families and is distributed with its permission. Copyright 2018 by AES Nation, LLC.



If this message was sent in error, please notify the sender, delete it, and do not use any part of this message. Email contents are not to be construed as investment, tax, accounting or legal advice. Views expressed in this message are of the sender, expect where stated otherwise. Past Performance is not indicative of future returns. ALL INVESTMENTS INVOLVE THE RISK OF LOSS. Accounts managed by A.G. Campbell Advisory, LLC may involve above-average portfolio turnover, which may reduce an investor’s after-tax returns. The contents of this message are not to be construed as an offer, or solicitation of an offer, to purchase securities. Such an offer may only be made by means of delivery of appropriate offering documents, which must be carefully reviewed by a prospective investor before making an investment decision. Performance numbers have not necessarily been independently reviewed or audited and we make no representation as to its accuracy. The information and statistics in this report have been obtained from sources we believe to be reliable but are not guaranteed by us to be accurate or complete. A.G. Campbell Advisory, LLC, its principals, directors, research analysts and other employees may hold or take significant positions in the securities mentioned. Any reference to contracts are subject to written confirmation. Do not send any personal information through email. All emails are subject to review by A.G. Campbell Advisory, LLC.

February 2019 Report

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Sudden Wealth
What Should You Do If You Strike It Rich?


If a few million dollars—or more—fell into your lap tomorrow, what would you do?


Sudden wealth isn’t a common or reliable way to get rich, but it can and does happen. Some big drivers of sudden wealth include:


·         Receiving a substantial inheritance

·         Getting a major settlement in a divorce or a lawsuit

·         Receiving a big payout because of stock options or the sale of your company

·         Winning the lottery


But while sudden wealth may sound like a dream come true, it’s often accompanied by serious challenges resulting from the “sudden” aspect of that money. With sudden wealth, everything about being rich—the good and the bad—happens all at once. In contrast, most people who build wealth slowly are able to address issues and concerns incrementally over time.


The result: Sudden wealth can be an emotionally charged and overwhelming experience. Sometimes there are emotional challenges because of the source of the money—a relative who died, for example. Feelings of panic or guilt can go hand in hand with the feelings of excitement. All those swirling emotions can cause recipients of sudden wealth to make bad—sometimes exceptionally bad—decisions about the money and about their lives.


Here’s a look at how you—or someone you care about, such as your children—can prepare to deal with sudden wealth effectively to realize amazing opportunities while avoiding the many pitfalls of “striking it rich.”


Relationship challenges of sudden wealth


To be sure, getting rich quickly can solve many financial problems. At the same time, getting rich quickly can create big problems in your relationships with other people—including the people in your life you care about most.


Some examples: Family and friends may knock on your door looking for funds from someone they now see as a financial “white knight.” A sibling might be looking for an investor in her new business, or a distant relative might ask for help paying medical bills. A friend might hit you up for a loan.


Your marriage can be impacted, too. Shared decisions about how to spend, save and invest the new wealth can create friction. Before you got rich, your money was used largely to pay the bills. Now, with a lot more money, the myriad possibilities can create a wedge between spouses.


Sudden wealth can also impact new relationships. Are new friends—and, especially, new potential romantic partners—interested in you, or your money?





People who experience sudden wealth can also fall into several traps that can quickly erode or eliminate those assets. These wealth destroyers can impact anyone, of course, but we see them hit the suddenly wealthy especially often.


  1. Giving away too much money. If you give too much of your wealth away, you can end up in your own precarious financial position faster than you might imagine. Even loaning money can prove problematic and occasionally disastrous.


  1. Extravagant spending. There is nothing wrong with treating yourself well and enjoying a good life. But if the money needs to last a long time, excessive spending can jeopardize your financial future. The key is to identify the necessities, the “nice to haves” and the “not that importants” and balance them.


  1. Poor investing and planning. If you receive a windfall, there may be a lot of professionals seeking to help you manage your money and address your planning needs. There is a high probability that many of these professionals are going to be “Pretenders” who aim to do a good job but are simply not talented enough to help you.


  1. Lawsuits. Your sudden wealth can make you a target for unscrupulous litigants. One way to address this possibility is by safeguarding your assets. By working with a wealth manager who is well-versed in asset protection planning, you can potentially insulate yourself from prospective deceitful and ruthless litigants—legally.

Take responsibility


If you or a loved one is fortunate enough to become suddenly wealthy, here’s a process we recommend that can help you or the other person get prepared and set up for success.


  • Assess your situation. You need a solid understanding of how much money there really is, and what you need and want to do with it. Often that requires slowing down and working through some of the emotions that accompany sudden wealth in order to think rationally about the windfall and its impact. A wish list, a balance sheet and a cash flow statement can all play a part in evaluating where you are and what you are considering.


  • Rely on consummate professionals. You want to work with true experts—recognized authorities who understand the difficulties you face due to becoming suddenly wealthy, and who are able to help you chart a financial course that matches your needs and wants. Consummate professionals can also act as a sounding board when it comes to most aspects of dealing with your newfound wealth. Their extensive experience, expertise and ability to see your situation rationally rather than emotionally can be useful in helping you think through different matters and plans.  


  • Make reasoned decisions. To make a windfall work best for you, you need to make intelligent and informed decisions, such as avoiding impulse buying and suffering buyer’s regret. Moreover, it is crucial to always recognize that you are in charge and to take responsibility.




ACKNOWLEDGMENT: This article was published by the VFO Inner Circle, a global financial concierge group working with affluent individuals and families and is distributed with its permission. Copyright 2019 by AES Nation, LLC.




If this message was sent in error, please notify the sender, delete it, and do not use any part of this message. Email contents are not to be construed as investment, tax, accounting or legal advice. Views expressed in this message are of the sender, expect where stated otherwise. Past Performance is not indicative of future returns. ALL INVESTMENTS INVOLVE THE RISK OF LOSS. Accounts managed by A.G. Campbell Advisory, LLC may involve above-average portfolio turnover, which may reduce an investor’s after-tax returns. The contents of this message are not to be construed as an offer, or solicitation of an offer, to purchase securities. Such an offer may only be made by means of delivery of appropriate offering documents, which must be carefully reviewed by a prospective investor before making an investment decision. Performance numbers have not necessarily been independently reviewed or audited and we make no representation as to its accuracy. The information and statistics in this report have been obtained from sources we believe to be reliable but are not guaranteed by us to be accurate or complete. A.G. Campbell Advisory, LLC, its principals, directors, research analysts and other employees may hold or take significant positions in the securities mentioned. Any reference to contracts are subject to written confirmation. Do not send any personal information through email. All emails are subject to review by A.G. Campbell Advisory, LLC.