Rotary Voices Podcast Summary
Episode: Generosity amid Uncertainty: Giving in a Volatile Market
Host: Derek Kinney
Guest: James Bogart, Certified Financial Planner and CEO of Bogart Wealth
Release Date: May 30, 2025
Introduction
In the Generosity amid Uncertainty: Giving in a Volatile Market episode of the Rotary Voices podcast, host Derek Kinney engages in a comprehensive discussion with James Bogart, a leading financial planner and CEO of Bogart Wealth. The conversation delves into navigating financial uncertainties, market volatility, and effective strategies for both investors and retirees. Additionally, the episode explores the intersection of financial planning and philanthropy, emphasizing the importance of generosity even in turbulent times.
Economic Overview
James Bogart opens the dialogue by addressing the unexpected trajectory of 2025’s economy. Despite consumer confidence dwindling and market volatility escalating, Bogart asserts that the economic conditions are aligning with anticipated changes post-election, albeit with unforeseen complexities.
“Volatility is going to be the norm as opposed to what we've been experiencing recently,”
– James Bogart [01:20]
Bogart highlights that the years 2023 and 2024 were anomalies with muted market volatility. In contrast, 2025 is marked by expected fluctuations exceeding 10%, driven by diverse catalysts such as geopolitical tensions and tariff concerns.
Market Volatility and Investor Emotion
The conversation shifts to the psychological impact of market volatility on investors. Bogart emphasizes the importance of maintaining a disciplined investment strategy rooted in fundamental principles to mitigate emotional decision-making.
“The number one detractor from long term performance is and will always be emotional involvement.”
– James Bogart [03:00]
He advises investors to stay committed to their financial plans, regardless of short-term market movements. By focusing on long-term goals and diversifying portfolios, investors can reduce the emotional strain that often leads to poor investment choices.
Managing Recession Concerns
Addressing the looming fear of a potential recession, Bogart provides a pragmatic outlook. While acknowledging the increased odds of a recession in 2025, he maintains that the probability remains below 50%.
“Odds of recession for 2025 have increased, but they're still below 50%.”
– James Bogart [08:35]
Bogart encourages individuals to align their investment strategies with their life stages. Younger investors should focus on wealth accumulation, taking advantage of strategic investment opportunities, whereas those nearing retirement should prioritize capital preservation and income generation.
Information Overload and Staying the Course
In an age dominated by constant news updates and social media, Bogart addresses the challenges investors face in filtering reliable information from noise. He advocates for a disciplined approach, recommending limited exposure to daily market news to maintain emotional stability.
“When you have volatility, don't look at your accounts. Just have some discipline. Do not log in, don't check the app, and turn the news off as best you can.”
– James Bogart [12:18]
This strategy helps prevent knee-jerk reactions to market swings and media sensationalism, allowing investors to stay focused on their long-term financial objectives.
Concerns of Middle-aged Investors
Bogart discusses the unique financial pressures faced by middle-aged individuals who juggle multiple financial obligations, such as saving for children's education, mortgages, and retirement. He stresses the importance of aligning savings and investments with specific financial goals and timelines.
“Aligning the respective dollars with the tranches of investments that should be in them.”
– James Bogart [21:35]
By categorizing funds into short-term, intermediate-term, and long-term buckets, investors can better manage risks and optimize returns based on their immediate and future financial needs.
Strategies for Investors Approaching Retirement
For those nearing retirement, Bogart outlines strategies to ensure financial stability during the deaccumulation phase. Emphasizing the significance of structured income sources, he advises retirees to balance their portfolios to cover necessary expenses while allowing discretionary spending to be supported by portfolio growth.
“Make sure that you're aligning your savings and your investments with the respective timeline of when the money is going to actually be needed.”
– James Bogart [24:10]
He also highlights the critical relationship between withdrawal rates and portfolio sustainability, recommending a safe withdrawal rate of around 4% to ensure funds last throughout retirement.
Generosity and Philanthropy Amid Uncertainty
Transitioning to the theme of generosity, Bogart discusses practical ways to give back during volatile market conditions. He advocates for tax-efficient donation methods, such as donating appreciated stocks instead of cash, which allows donors to maximize their philanthropic impact without incurring additional tax burdens.
“If you have a stock position in a brokerage account that has unrealized gains, you absolutely should be donating stock and not writing a check.”
– James Bogart [32:01]
Additionally, Bogart introduces the concept of an "Educational Empowerment Fund," encouraging parents to allocate a portion of college savings to entrepreneurial endeavors, thereby fostering financial independence and creativity in the next generation.
“Give them this entrepreneurial mindset of don't just tie it up for college.”
– James Bogart [25:11]
Conclusion
The episode concludes with Bogart reaffirming the resilience of the US economy and the importance of strategic financial planning. By staying grounded in long-term goals, diversifying investments, and maintaining emotional discipline, individuals can navigate uncertain markets effectively. Furthermore, integrating generosity into financial strategies not only supports philanthropic goals but also enriches personal fulfillment and community well-being.
“Control what you can control.”
– James Bogart [15:22]
Notable Quotes
- “Volatility is going to be the norm as opposed to what we've been experiencing recently.” – James Bogart [01:20]
- “The number one detractor from long term performance is and will always be emotional involvement.” – James Bogart [03:00]
- “Odds of recession for 2025 have increased, but they're still below 50%.” – James Bogart [08:35]
- “When you have volatility, don't look at your accounts. Just have some discipline.” – James Bogart [12:18]
- “Aligning the respective dollars with the tranches of investments that should be in them.” – James Bogart [21:35]
- “Control what you can control.” – James Bogart [15:22]
This comprehensive summary encapsulates the key discussions and insights from the podcast episode, providing listeners and non-listeners alike with valuable takeaways on financial planning, managing market volatility, and the role of generosity in uncertain times.