S4E4 – Financial Disasters Unpacked

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In this episode of Kitchen Table Finance, Dave Shotwell and guest co-host Cole Williams take a deep dive into financial crises—focusing on the Great Recession of 2007–2009. They explore its impact on financial planning, investor psychology, and how those experiences shape decisions even today.

What You’ll Learn:

• How the Great Recession shaped financial attitudes across generations
• The emotional and psychological effects of financial downturns
• Lessons from history: Comparing 2008 to the Great Depression and other crises
• How financial advisors help clients navigate uncertainty and market volatility
• Why market timing is nearly impossible and long-term strategies win
• The role of behavioral finance in decision-making during downturns
• How financial resilience and adaptability can shape retirement planning

Key Takeaways:

🔹 History Repeats Itself – Financial crises, while painful, follow patterns, and understanding past downturns can help prepare for the future.
🔹 Behavioral Finance Matters – Panic-selling and market timing can lead to poor financial decisions. Understanding biases like recency bias and action bias can help investors stay disciplined.
🔹 Resilience is Key – Individuals and institutions have shown time and time again that they can recover from financial disasters.
🔹 Planning for the Worst – Financial advisors use historical downturns to stress-test portfolios and help clients prepare for future crises.
🔹 The Importance of Liquidity – Having an emergency fund or access to cash prevents the need to sell investments at the worst possible time.

Memorable Moments:

🗣️ “There was no all-clear signal that the market had hit bottom—it just slowly started to come back.”
🗣️ “If we sell now, you’re never going to make your money back. But let’s find actions that feel proactive without hurting your portfolio.”
🗣️ “The system is extremely resilient, and people are adaptable. That’s the biggest lesson from the Great Recession.”

Resources & Links:

📌 Shotwell Rutter Baer Financial Planning
📌 Get in touch: info@srbadvisors.com

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