Happy New Year!

We hope 2020 is a great year for you, and the start of an even greater decade!

Fifty years ago, Vince Lombardi coached his last football game. Lombardi is universally recognized as one of the greatest coaches in football history, as well as a pioneering figure who helped break the sport’s color barrier. These days, however, Lombardi is equally remembered for his famous aphorisms about winning, teamwork, and perseverance.

For most of us, a New Year means new goals and resolutions. That’s why we thought it would be interesting to look at some of Lombardi’s most famous maxims.¹ As financial advisors, we find them both inspiring and educational, because many can be applied not just to football success, but financial success. As you work towards the resolutions you set this year, keep these quotes in mind. Applying them may just make the difference between a resolution kept and a resolution abandoned.

So, without further ado, here are:

Nine Vince Lombardi Quotes

for goals, finances, life, and everything in between

1. “The only place success comes before work is in the dictionary.”

When we think of all the people we’ve known who set ambitious goals and reached them, we are amazed by their work ethic. In many cases, the people who are most likely to reach their goals are the ones for whom the journey is the greatest reward.

2. “Inches make champions.”

This is so true. When we commit ourselves to do just a little bit extra, when we never settle for eleven inches when twelve is what we want, those inches compound on themselves, and we can accomplish so much more. 

3. “Once you learn to quit, it becomes a habit.”
4. “Winning is a habit. Watch your thoughts, they become your beliefs. Watch your beliefs, they become your words. Watch your words, they become your actions. Watch your actions, they become your habits. Watch your habits, they become your character.”

The historian Will Durant once wrote, “We are what we repeatedly do. Excellence is not an act, but a habit.” As we pursue our goals in 2020 and beyond, it’s often best to focus on progressing just a little each day rather than trying to do too much, too quickly. The former is sustainable. The latter isn’t. 

5. “The measure of who we are is what we do with what we have.”
6. “The quality of a person’s life is in direct proportion to their commitment to excellence, regardless of their chosen field of endeavor.”

Just as none of us have the same goals in life, none of us have the same path to those goals. Some people begin the journey with more or less than others. Some people have more or less support than others. Some people set ambitious goals; others set more modest ones. But what truly matters, in the end, is not how much money we’ve earned or how many accolades we’ve gained. What matters is how well we spent the time given to us.

Life is an investment. If you put in all you have, you’ll take out even more. 

7. “People who work together will win, whether it be against complex football defenses, or the problems of modern society.”

Another truth. Just as no one is an island, no one, not even the most self-reliant, achieves their goals entirely on their own. We all need a team to support and be supported by. Sometimes that team is our own family. Sometimes it’s the professionals we choose to partner with. Whoever it is, when we surround ourselves with honest, caring, and hard-working people, it becomes so much easier to be all those things, too. 

8. “It’s not whether you get knocked down. It’s whether you get back up.”

Probably Lombardi’s most famous quotation, and for good reason. Whether it’s a New Year’s Resolution or a life-long goal, every single one of us will face setbacks. Every single one of us will fail – often more than once. But life is like football in a sense. We always have the opportunity to take the field again. Those who do will triumph in the end.

9. “If you’ll not settle for anything less than your best, you will be amazed at what you can accomplish in your life.”

Our favorite quote of all. As you set new goals and resolutions, always lift your eyes to your highest dream. Believe me, it’s within your reach.

It’s always been within your reach.

We hope you have a Happy New Year – and an even happier new decade!

Please let us know if there is ever anything more we can do to help you work towards your goals and resolutions.  

1 “Famous Quotes by Vince Lombardi,” http://www.vincelombardi.com/quotes.html

We recently came across a story that, to us, is a perfect example of what this holiday season is really all about. We thought you might like to read it, too.

As you know, this is the time of year when children feverishly craft their wish lists, and dream of the presents they might find waiting for them.  When every girl and boy has visions of Sony PlayStations and the newest, most popular toys.

This is to be expected. Most of us did it when we were kids. Our parents did it, too. As did our grandparents, and their parents before them. The toys change with each generation, but the desire is as old as time.

But as we get older, every generation learns what the previous one already knows: This time of year isn’t just for getting. It’s for giving. Enter the Burrito Boyz.

***

iPads. iPhones. MacBooks. As Michael Johnson looked over his son’s Christmas list, he felt increasingly unnerved by the boy’s tendency to focus more on gadgets and gizmos than on giving.¹  That’s when he decided something needed to change. It was time for his son to learn what the world was like off-screen.

So, Michael and his wife Mehrnaz came up with a novel idea. One December morning shortly before Christmas, they woke their son Alec and his friend Luke and put them to work making egg-and-cheese burritos. The boys made fifty-four in total, then followed Alec’s parents into downtown San Diego to hand them out to the homeless and hungry.²

At first, the two boys thought it was torture. Punishment for doing something wrong. And at first, the two parents thought it would be just a temporary diversion. A brief but vital lesson about how most people don’t have the luxury of wishing for iThis or e-That.

But the next Sunday, the family decided to do it again. And again. 

And again.

From fifty-four burritos to hundreds at a time. From just Alec and Luke to seven other boys from their soccer team. Each was given a job. One would scoop the eggs. Another was in charge of cheese. A third oversaw baking, and so on.¹  Soon, they no longer needed to be told what to do. They volunteered to do it.

Soon they realized that giving back wasn’t just fun. It was rewarding.

And thus, the Burrito Boyz were born.

That was nine years ago. Today, the Johnsons’ little project has blossomed into a full-blown non-profit organization. Every Sunday, the boys still go out, giving burritos and bottled water to people in need. They also provide clothes, books, and joy to everyone they meet.

As one person put it, “I really look forward to my Sundays. It’s amazing to see these boys. They’ve got the most beautiful hearts.”³

Now, almost a decade later, having served over 75,000 meals⁴ to their community, the Burrito Boyz know what our parents knew, and their parents, too: That little acts of kindness, of generosity, of service are far more valuable than any gadget ever could be.

***

We hope you enjoyed this inspiring story. From everyone at Research Financial Strategies, we wish you a wonderful holiday season spent with family and friends. Thank you for all the kindness and generosity you have shown us.

Happy Holidays – and a Happy New Year!

1- “How 1 dad inspired teenagers to make burritos for the homeless,” Yahoo, https://news.yahoo.com/blogs/the-upbeat/1-dadinspired-teenage-kids-33-000-burritos-151030526.html
2- “Teens Deliver 33,000 Burritos to the Homeless,” Daily Good, http://www.dailygood.org/story/517/teens-deliver-33-000-
burritos-to-the-homeless-the-huffington-post/
3- “Burrito Boys deliver food and friendship,” The San Diego Union-Tribune, https://www.sandiegouniontribune.com/sdutburrito-
boys-deliver-food-and-friendship-2011dec23-story.html
4- “About Us,” The Burrito Boyz, http://www.burritoboyz.org/about-us/

In our experience, we’ve found that the most successful solutions begin by asking the right questions.
We gain a broader perspective of your goals and the future you wish to create

We recently came across a story that, to us, is a perfect example of what this holiday season is really all about. We thought you might like to read it, too.

As you know, this is the time of year when children feverishly craft their wish lists, and dream of the presents they might find waiting for them.  When every girl and boy has visions of Sony PlayStations and the newest, most popular toys.

This is to be expected. Most of us did it when we were kids. Our parents did it, too. As did our grandparents, and their parents before them. The toys change with each generation, but the desire is as old as time.

But as we get older, every generation learns what the previous one already knows: This time of year isn’t just for getting. It’s for giving. Enter the Burrito Boyz.

***

iPads. iPhones. MacBooks. As Michael Johnson looked over his son’s Christmas list, he felt increasingly unnerved by the boy’s tendency to focus more on gadgets and gizmos than on giving.¹  That’s when he decided something needed to change. It was time for his son to learn what the world was like off-screen.

So, Michael and his wife Mehrnaz came up with a novel idea. One December morning shortly before Christmas, they woke their son Alec and his friend Luke and put them to work making egg-and-cheese burritos. The boys made fifty-four in total, then followed Alec’s parents into downtown San Diego to hand them out to the homeless and hungry.²

At first, the two boys thought it was torture. Punishment for doing something wrong. And at first, the two parents thought it would be just a temporary diversion. A brief but vital lesson about how most people don’t have the luxury of wishing for iThis or e-That.

But the next Sunday, the family decided to do it again. And again. 

And again.

From fifty-four burritos to hundreds at a time. From just Alec and Luke to seven other boys from their soccer team. Each was given a job. One would scoop the eggs. Another was in charge of cheese. A third oversaw baking, and so on.¹  Soon, they no longer needed to be told what to do. They volunteered to do it.

Soon they realized that giving back wasn’t just fun. It was rewarding.

And thus, the Burrito Boyz were born.

That was nine years ago. Today, the Johnsons’ little project has blossomed into a full-blown non-profit organization. Every Sunday, the boys still go out, giving burritos and bottled water to people in need. They also provide clothes, books, and joy to everyone they meet.

As one person put it, “I really look forward to my Sundays. It’s amazing to see these boys. They’ve got the most beautiful hearts.”³

Now, almost a decade later, having served over 75,000 meals⁴ to their community, the Burrito Boyz know what our parents knew, and their parents, too: That little acts of kindness, of generosity, of service are far more valuable than any gadget ever could be.

***

We hope you enjoyed this inspiring story. From everyone at Research Financial Strategies, we wish you a wonderful holiday season spent with family and friends. Thank you for all the kindness and generosity you have shown us.

Happy Holidays – and a Happy New Year!

1- “How 1 dad inspired teenagers to make burritos for the homeless,” Yahoo, https://news.yahoo.com/blogs/the-upbeat/1-dadinspired-teenage-kids-33-000-burritos-151030526.html
2- “Teens Deliver 33,000 Burritos to the Homeless,” Daily Good, http://www.dailygood.org/story/517/teens-deliver-33-000-
burritos-to-the-homeless-the-huffington-post/
3- “Burrito Boys deliver food and friendship,” The San Diego Union-Tribune, https://www.sandiegouniontribune.com/sdutburrito-
boys-deliver-food-and-friendship-2011dec23-story.html
4- “About Us,” The Burrito Boyz, http://www.burritoboyz.org/about-us/

In our experience, we’ve found that the most successful solutions begin by asking the right questions.
We gain a broader perspective of your goals and the future you wish to create

In 1945, there were sixteen million of them.
Today, there are less than 500,000 left.

They endured the hardships of the Depression. They watched firsthand as radio, talking pictures, and television changed how we live. They witnessed the dawn of the Space Age. And, of course, they fought to free the world from the evil grip of fascism. I’m sure you’ve already guessed who I’m referring to:

The American veterans of World War II.

According to the Department of Veterans Affairs, there were only 496,777 veterans left in 2018 – and approximately 348 die every day.  That means every day, a little bit of courage, valor, determination, and sacrifice leaves the world forever. Every day, the sights, sounds, and smells of Pearl Harbor, Midway, Iwo Jima, Sicily, Omaha Beach, Bastogne, and a hundred other tragedies and triumphs disappear from living memory.

But the world will never forget what they did there.

They slogged in trenches and stormed beachheads. They parachuted from planes and plumbed the ocean’s depths in submarines. They built bridges, broke codes, and brought food to desperate, war-wracked villages. They liberated countries and concentration camps.

Why did they do it? Why did they go, leaving their families, jobs, and futures? Not because they were paid lots of money or promised great rewards. For most, it wasn’t even because they or their loved ones were in any real danger.

They went because it was the right thing to do.
They truly are the Greatest Generation. And now, they are almost gone.

But this is why we have days like Veterans Day. While November is usually dominated by thoughts of turkey, family, and football, we really have two Thanksgivings this month. There’s the more famous one, sure, and it’s important, too.

But we also have an earlier Thanksgiving. A day to give thanks for one of the most important things in our country – our veterans. Now, Veterans Day is for all living veterans, not just those who served in World War II. But, since we don’t have much time left with the men and women who served in that epic conflict, I think it’s important to do all we can to honor and help them before they’re gone.

Fortunately, there are many ways we can serve those who served our country. We can share our money, our talents, and our time by:
• Volunteering at veterans’ hospitals, nursing homes, and clinics.
• Working with Local Veterans Assistance Programs to run errands or do housework.
• Donating funds to various charity organizations that serve veterans.

Even something as simple as delivering a homemade card, heartfelt thank you letter, or batch of cookies can make a real difference.

If you’re interested, here are two websites to get you started:
www.dav.org/help-dav/volunteer/volunteer-locally-help-veterans/
www.volunteer.va.gov/

***

It’s no exaggeration to say the world we know, the country we live in, and the freedoms we enjoy would all be drastically different were it not for those who served in the second World War. So, this Veterans Day, I hope we all can remember to give thanks for our veterans.

There were sixteen million of them once. All serving so that uncountable millions more would live free from tyranny. Now, they are almost gone – and it’s up to us to ensure that what they accomplished lives on forever.

Because it’s the right thing to do.

On behalf of everyone here at Research Financial Strategies, we wish you a happy Veterans Day!

If you ask an economist what makes them toss and turn at night, chances are they’ll tell you, “Fear of missing the warning signs of a recession.” After all, for anyone who studies the economy for a living, few things could be worse than a sudden economic slump catching you by surprise.

That’s why many economists rely on certain indicators to predict if there’s rough weather ahead.  Historically, one of the most reliable indicators is the inverted yield curve. This is when the yield on long-term bonds drops below the yield on short-term bonds. Why does this matter to economists?  Because an inverted yield curve has preceded every recession since 1956.¹

Long-Term Bond Yield Hits Record Low²
Stocks Skid as Bonds Flash a Warning³
The Wall Street Journal, August 14, 2019

 On August 14, the yield on 10-year Treasury bonds dropped below 1.6%, officially falling beneath the yield on 2-year Treasury bonds for the first time since 2007.⁴ That’s an inverted yield curve. The markets responded the way children do when a hornet gets inside the family car – they panicked. The Dow, the S&P 500, and the NASDAQ all fell sharply, with the Dow plunging over 700 points.³

The obvious question, of course, is “Why?”

It’s a smart question! To the average investor, the term “inverted yield curve” probably doesn’t sound very scary. So, why does it have the markets freaking out? Let’s break it down by answering a few basic – but also smart – questions.

What’s a bond yield, again?
A bond yield is the return you get when you put your money in a government or corporate bond. Whenever an investor buys a bond, they’re agreeing to loan money to the issuer of that bond – the government, in the case of Treasury bonds – for a specific length of time. Typically, the longer the time, the higher the yield, as investors want a greater return in exchange for locking up their money for years or even decades. That’s why the yield on long-term bonds is almost always higher than on short-term bonds. When these trade places, we have an inverted yield curve.

Okay, so why have bond yields inverted?
Bear with me here, because I’m about to get a little technical. Bond yields have an inverse relationship with bond prices. That means when prices go up, yields fall, and vice versa.

What do I mean by price? Well, investors must pay to buy bonds, of course, and when more people buy them, the price of these bonds goes up. (It’s the basic law of supply and demand: When the demand for something increases, so does the price.) When that happens, yields drop.

Investors often see bonds as safe havens of sorts, especially during economic turmoil. Stocks, on the other hand, tend to be seen as “higher risk, higher reward” investments. In this case, investors are selling their stocks and plowing more and more money into long-term bonds, pushing prices up and yields below that of short-term bonds. The fact investors are doing this suggests they’re not optimistic about the near future health of the economy and are seeking safe places to park their money.

Why are investors so worried about the economy?
On the home front, it’s largely because of the trade war between the U.S. and China. As the two nations engage in an ever-growing battle of tariffs, the fear is that businesses in the U.S. will have to raise prices, thereby hurting consumers. On August 13, President Trump decided to delay the most recent round of tariffs until December, saying he didn’t want tariffs to affect shopping during the Christmas season.⁵  Previously, Trump predicted tariffs would not hurt U.S. businesses, so this sudden about-face suggests even he is worried.

Investors are also worried about a slowdown in the global economy. Two of the world’s most important economies, China and Germany, have both shrunk. Put all these things together and it’s not hard to see why investors worry about a recession in the near future.

Fears the recent news about inverted yield curves will only stoke.

So is a recession imminent?
As I mentioned earlier, inverted yield curves have preceded every recession since 1956. This includes the Great Recession of 2008. But does this mean a recession is just around the corner?

No!

There are two things to keep in mind here. First, a brief inverted yield curve is not the same thing as a sustained one. While inversions have preceded every modern recession, inversions do not always lead to a recession. Think of it this way: You can’t have a rainstorm without dark gray clouds. But dark gray clouds don’t always lead to a rainstorm. Make sense?

You see, correlation does not equal causation. By this I mean that while inversions and recessions are often seen together, one does not actually cause the other. An inverted yield curve is like a sneeze: It’s a symptom, not the disease itself. And while a sneeze can mean you have a cold, it doesn’t lead to a cold. Sometimes, we sneeze because we got pepper up our nose.

Second, let’s assume for argument’s sake that this recent inversion is a warning sign of a future recession. That doesn’t mean a recession is imminent. Some analysis suggests that it takes an average of twenty-two months for a recession to follow an inversion.1 That’s a long time! A long time to save, invest, plan and prepare.

So does an inverted yield curve even matter, then?
I’ll put it simply: It matters enough to pay attention to. It doesn’t matter enough to be worth panicking over. Make no mistake, we’re in a volatile period right now. There’s a lot of evidence to suggest that volatility will continue. But while comparing the markets to the weather has become something of a cliché, it also makes a lot of sense. When storm clouds gather, we pack an umbrella or stay inside. We don’t run for the hills.

The same is true of market volatility.

Remember, an inverted yield curve is an indicator, not a prophecy. Economists can toss and turn about such things, but you and I are focusing on something much less abstract: your financial goals. More important than any indicator, more important than the day-to-day swings in the markets, is the discipline we show. If you think about it, market volatility is really a symptom, too – a symptom of emotional decision making. Investors see a good headline, and they buy, buy, buy! That’s a market rally. Investors see a bad one, and they sell, sell, sell! That’s a market dip.

Investing based on emotion leads to one thing: Regret. Regret that we bought into the hype and bought when we should have waited for a better deal. Regret that we fell into fear and sold when we should have held on longer. We invest by being disciplined enough to buy, hold, or sell when it makes sense for your situation.

That’s the best way to stay on track toward your goals. That’s the best way to not toss and turn at night. We don’t make decisions based on predictions. We make decisions based on need.

Our team at Research Financial Strategies will keep watching the indicators. We’ll keep doing our best to explain the twists and turns in the markets. And we’ll keep doing our best not to overreact to any of them. In the meantime, please contact us if you have any questions or concerns. We always love to hear from you!

1 “The inverted yield curve explained,” CNBC, August 14, 2019. https://www.cnbc.com/2019/08/14/the-inverted-yield-curveexplained-and-what-it-means-for-your-money.html
2 “Long-Term Bond Yield Hits Record Low,” The Wall Street Journal, August 14, 2019. https://www.wsj.com/articles/bondrally-drives-30-year-treasury-yield-to-record-low-11565794665
3 “Stocks Skid as Bonds Flash a Warning,” The Wall Street Journal, August 14, 2019. https://www.wsj.com/articles/asianstocks-gain-on-tariff-delay-11565769562
4 “Dow tumbles 700 points after bond market flashes a recession warning,” CNN Business, August 14, 2019. https://www.cnn.com/2019/08/14/investing/dow-stock-market-today/index.html
5 “U.S. Retreats on Chinese Tariff Threats,” The Wall Street Journal, August 13, 2019. https://www.wsj.com/articles/u-s-willdelay-some-tariffs-against-china-11565704420