Connect with us

Business

Are Your Investment Goals Unrealistic? Goldstone Financial Group Weighs In

mm

Published

on

How much should American retirees temper their investment expectations against market fluctuations? 

If you had posed the question this time last year, you probably would have received a flurry of cautiously optimistic responses as investors looked forward to what they had every reason to believe would be another bull market year. Optimism was rampant — and exciting for investors and retirees, who saw the climbing Dow as a sign that they would be able to live out their sunset years with comfortably-padded retirement accounts

“Nobody in the financial sector wanted to bring people down with dire predictions when the market appeared to be doing so well,” Anthony Pellegrino, the owner and co-founder at Goldstone Financial Group, noted of the mentality at the time. “Investors get fired up when they see reports of record highs.”

“I remember in 2015, there was major pushback from financial professionals when experts at Research Affiliates analyzed financial data from the preceding century and reported that it would be ‘optimistic’ to plan for even a five percent long-term return on a traditional portfolio. People were shocked — and a lot of them rejected those projections as being overly cautionary when the market remained strong.”  

And at the close of 2019, the market’s strength appeared to be on-track to persist. But within the first few weeks of the new year, the Covid-19 pandemic upended the global economy and caused the Dow to plummet. Ten months have since passed, and both have begun to recover.

“It’s not so much about good vs. bad news,” Ryan Detrick, senior market strategist at LPL Financial, recently told USA Today. “The economy is still nowhere near its output prior to the pandemic. But things are getting better.”

However, amid that improvement, those saving for retirement have been forced to question whether the need to revise their expectations for their accounts. The pandemic has demonstrated the dangers of assuming that good times will continue indefinitely — but how pessimistic should investors be about the future?

“This conversation always reminds me of the letter that Warren Buffett sent to his shareholders in early 2008,” Goldstone Financial Group’s Anthony Pellegrino says of expectation-setting. “Back then, he told people to check their perceptions of Dow growth and warned about the dangers of taking those increases out of context. That advice remains just as relevant — if not more so — today.” 

For context, here’s the passage that Pellegrino references from Buffet’s 2008 letter:

“During the 20th Century, the Dow advanced from 66 to 11,497. This gain, though it appears huge, shrinks to 5.3% when compounded annually […] For investors to merely match that 5.3% market-value gain, the Dow — recently below 13,000 — would need to close at about 2,000,000 on December 31, 2099 […] I should mention that people who expect to earn 10% annually from equities during this century — envisioning that 2% of that will come from dividends and 8% from price appreciation — are implicitly forecasting a level of about 24,000,000 on the Dow by 2100.”

“If your adviser talks to you about double-digit returns from equities,” Buffett concluded, “Explain this math to him.”

When taken into consideration alongside the uncertainty posed by Covid-19, Buffett’s math provides investors with ample reason to be careful. But what measures can aspiring retirees take to protect themselves and their accounts? 

Goldstone Financial Group’s Anthony Pellegrino points to three main strategies — consulting a fiduciary advisor, exploring IRA opportunities, and moving away from a buy-and-hold norm. 

Consulting a Fiduciary

Are you intimidated by market fluctuations and want a professional’s help in navigating them? A fiduciary advisor can help. 

“I cannot stress the importance of finding a fiduciary advisor enough,” Pellegrino emphasizes. “If you opt for a non-fiduciary professional, well, I’ll borrow another Buffett quote — ‘beware the glib helper who fills your head with fantasies while he fills his pockets with fees.’”

A fiduciary advisor is a financial professional who is legally obligated to act in their client’s best interests. They can only purchase and sell investments that they believe are well-suited to their clients’ needs and goals, and they cannot base their decisions on whether their suggested investments would provide the best kickbacks. 

As writers for NerdWallet summarize: “Fiduciaries are held to a significant level of trust with their clients and must avoid conflicts of interest. If your financial advisor does not have a fiduciary duty to you, they may be able to recommend investments or products that pay them a bigger commission over ones that would be the best fit for you, which could cost you more.”

Every single investment advisor employed at Goldstone Financial Group is a certified fiduciary advisor. The logic behind this policy is simple. 

“We want our clients to get the best possible advice,” Anthony Pellegrino says. “Having advisors who are held to a fiduciary standard ensures that they receive exactly that.” 

Explore IRA Opportunities

Think you can’t touch the money in your 401(k) until you retire? Think again! Pellegrino and the fiduciary advisors at Goldstone Financial Group often suggest that their clients withdraw a portion of their account balance and roll it over into an IRA account. The benefits of this tactic, Pellegrino says, include increased flexibility with investments.

“A nontaxable rollover to an IRA would give you more freedom to work with your financial advisor in choosing investments,” Pellegrino explains. “That said, you should always consult with your tax professional about potential tax implications before embarking on this strategy.”

Rethink Buy-and-Hold

Making investments and holding onto them indefinitely isn’t always the best strategy for long-term growth. 

“You may want to opt for tactical managed asset accounts that will allow you to capture and participate in the stock market’s upside and then, when the market declines, shift your assets to cash,” Goldstone Financial Group’s Anthony Pellegrino suggests. “Sure, you may still experience a loss — but typically, you’ll lose less than you would with a buy-and hold-strategy.” 

At the end of the day, Pellegrino offers one piece of advice that supersedes all others. 

“Don’t go through this alone. Your situation is unique, and the solutions you need will be equally so. Consult with a fiduciary advisor to see how your expectations and plans stack up against market conditions.” 

The idea of Bigtime Daily landed this engineer cum journalist from a multi-national company to the digital avenue. Matthew brought life to this idea and rendered all that was necessary to create an interactive and attractive platform for the readers. Apart from managing the platform, he also contributes his expertise in business niche.

Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Scaling Success: Why Smart Habits Beat Growth Hacks in Modern eCommerce

mm

Published

on

There’s a romanticized image of the eCommerce founder: a daring risk-taker chasing the next big idea, fueled by late-night caffeine and last-minute inspiration. But the reality behind scaled, sustainable brands tells a different story. Success in digital commerce doesn’t come from chaos or clever hacks. It comes from habits. Repetitive, structured, often unglamorous habits.

Change, a digital platform created by eCommerce strategist Ryan, builds its entire philosophy around this truth. Through education, mentorship, and infrastructure, Change helps founders shift from scrambling for quick wins to building strong systems that grow with them. The company doesn’t just offer software. It provides the foundation for digital trade, particularly for those in the B2B space.

The Habits That Build Momentum

At the heart of Change’s philosophy are five core habits Ryan considers non-negotiable. These aren’t buzzwords; they’re the foundation of sustainable growth.

First, obsess over data. Successful founders replace guesswork with metrics. They don’t rely on gut feelings. They measure performance and iterate.

Second, know your customer deeply. Not just what they buy, but why they buy. The most resilient brands build emotional loyalty, not just transactional volume.

Third, test fast. Algorithms shift. Consumer behavior changes. High-performing teams don’t resist this; they test weekly, sometimes daily, and adapt.

Fourth, manage time like a CEO. Every decision has a cost. Prioritizing high-impact actions isn’t optional; it’s survival.

Fifth, stay connected to mentorship and learning. The digital market moves quickly. The remaining founders are the ones who keep learning, never assuming they know it all. 

Turning Habits into Infrastructure

What begins as personal discipline must eventually evolve into a team structure. Change teaches founders how to scale their systems, not just their sales.

Tools are essential for starting, think Notion for documentation, Asana for project management, Mixpanel or PostHog for analytics, and Loom for async communication. But tools alone don’t create momentum.

Teams need Monday metric check-ins, weekly test cycles, customer insight reviews, just to name a few. Founders set the tone by modeling behavior. It’s the rituals that matter, then, they turn it into company culture.

Ryan puts it simply: “We’re not just building tools; we’re building infrastructure for digital trade.”

Avoiding the Common Traps

Even with structure, the path isn’t always smooth. Some founders over-focus on short-term results, chasing vanity metrics or shiny tactics that feel productive but don’t move the needle.

Others fall into micromanagement, drowning in dashboards instead of building intuition. Discipline should sharpen clarity, not create rigidity. Flexibility is part of the process. Knowing when to pivot is just as important as knowing when to persist.

Scaling Through Self-Replication

In the end, eCommerce scale isn’t just about growing a business. It’s about repeating successful systems at every level. When founders internalize high-performance habits, they turn them into processes, then culture, then legacy.

Growth doesn’t require more motivation. It requires more precision. More consistency. Your calendar, not your to-do list, is your business plan.

In a space dominated by noise and novelty, Change and its founder are quietly reshaping the conversation. They aren’t chasing trends but building resilience, one habit at a time.

Continue Reading

Trending