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Janesville advisers: Long-term plans are key

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GINA R. HEINE
July 29, 2011
— Despite uncertainty looming over the nation’s debt limit, local financial planners say they haven’t heard from many clients about making changes in their investments.

People should trust their long-term plans, they said.


Chad Karl, a certified financial planner in Janesville, said he hasn’t taken a lot of phone calls. That’s probably because of his proactive approach with clients in the last two to three years of shifting more money into cash, bonds, real estate investment trusts and commodities in anticipation of inflation, he said.


“As government continues printing more money, it’s continuing to devalue our currency,” he said.


Because he’s already reached out to a lot of his clients, “they know not to react too late,” he said.


He’s talked to other people, though, who wish they had reallocated their investments a long time ago to avoid losses, he said.


With the market down a few hundred points this week, he said it’s getting kind of late to react. The Dow Jones industrial average was down Thursday for a fifth straight session.


“If you change your portfolio, you’re really reacting to it,” he said. “It should have been proactive three to four months ago.”


While he stressed a long-term approach, he admits there still is opportunity for people who want to make changes before Tuesday.


“But I don’t want to get people too overly excited,” he said.


People are concerned about losing money, but financial adviser John Berkley of Janesville asks them what the difference is between this week and two weeks ago.


“The debt problem was there a few weeks ago,” he said. “What’s happened other than the stock market’s gotten more attractively priced?”


He said people with a sound, long-term investment portfolio should not be affected by any changes.


He suggests turning off the TV.


And if you have a concern?


“That’s why you have a financial adviser,” Berkley said. “Call them.”


Trying to predict what’s going to happen Tuesday can be expensive, he said.


“If (you were) on the right path three weeks ago, then there’s nothing that should have to be changed this week,” he said.



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