Tim Ulbrich, PharmD, reflects on losing over $100,000 during recent market volatility and shares eight powerful, experience-driven lessons from two decades of investing to help listeners navigate the emotional and practical realities of building wealth.
This episode is brought to you by APhA.
Episode Summary
In this episode, Tim Ulbrich, PharmD gets personal and shares how he lost over $110,000 in just five days.
Despite his professional background in personal finance, Tim candidly shares how challenging it was to write those numbers down—highlighting just how emotional and disorienting the recent market volatility can feel, even for seasoned investors.
Drawing on two decades of investing experience, Tim unpacks eight key lessons that go beyond theory. These aren’t just ideas from a textbook or strategies he’s shared with clients—they’re principles shaped and reinforced by real-life experience. From understanding loss aversion and the importance of diversification to recognizing one’s own risk tolerance, this episode offers practical insights for navigating the highs and lows of investing with confidence and resilience.
Key Points from the Episode
- [00:00] Introduction and Personal Story
- [01:35] Sponsor Message: American Pharmacist Association
- [02:30] The $110,000 Loss: A Detailed Breakdown
- [04:12] Lesson 1: The Reality of Loss Aversion
- [06:10] Lesson 2: Humility in Uncertain Markets
- [07:15] Lesson 3: Importance of a Strong Financial Foundation
- [08:55] Lesson 4: Risk Tolerance vs. Risk Capacity
- [10:45] Lesson 5: Diversification Strategies
- [13:05] Lesson 6: Market Fear and Volatility
- [15:19] Lesson 7: Long-Term Horizons vs. Short-Term Volatility
- [18:33] Lesson 8: The Importance of Time Horizon
- [20:36] Developing a Resilient Financial Plan
- [21:41] YFP Financial Planning Services
- [24:47] Conclusion and Final Thoughts
Episode Highlights
“The challenge for today’s investor, for you, for I, is that we live in a time period where we have a 24/7 news cycle, social media algorithms, information is always in front of us, and that speed of information travels such that loss aversion, that feeling, can be amplified.”- Tim Ulbrich [5:28]
”A strong financial foundation is key, especially when we’re in periods of a volatile market.” – Tim Ulbrich [8:48]
“But to truly design an investing and retirement strategy that’s both effective and sustainable, it’s important that we consider and understand the difference between risk tolerance and risk capacity, because if we don’t account for both, our plan may unravel quickly the moment the market gets choppy.” – Tim Ulbrich [9:10]
Mentioned in Today’s Episode
- APhA
- The Behavioral Investor by Daniel Crosby
- YFP YouTube Channel
- YFP Book a Discovery Call
- YFP Disclaimer
- Subscribe to the YFP Newsletter
- Tim Ulbrich on LinkedIn
- YFP on Instagram
- YFP Facebook Group
Episode Transcript
Tim Ulbrich: Hey everybody. Tim Ulbrich here and welcome to this week’s episode of the YFP podcast where we strive to inspire and encourage you on your path towards achieving financial freedom. I’ve got a question for you as we get started this week. Have you ever logged in your investment account and felt your stomach drop?
Tim Ulbrich: Because in this episode I’m sharing something personal, how I lost over $110,000 in just five days. And if I zoom out to the peak of the portfolio back in December, 2024, the total losses across various accounts are well over $200,000. Now, even as someone who does this work for a living, I’ll be honest, saying that out loud makes me nauseous, but the recent [00:01:00] market volatility has also served as a powerful reminder of the emotional and behavioral side of investing because let’s face it, this stuff feels very different.
Tim Ulbrich: When you’re in the middle of it. So today I’m unpacking eight key lessons that I’ve learned over the last 20 years of investing. These aren’t just things I’ve read in a textbook or taught to various pharmacists and educational sessions. These are principles that I’ve lived and been reminded of through recent experience, from the realities of loss aversion to the importance of diversification and understanding your own risk tolerance.
Tim Ulbrich: We’re covering a lot of ground on today’s episode. Whether you’re feeling uneasy about the markets right now or just looking to build a more resilient financial plan. I hope this episode gives you perspective, encouragement, and some practical takeaways to study the ship. Before we dive in, let’s hear from today’s sponsor, the American Pharmacist Association.
Tim Ulbrich: A PHA is a paying sponsor of this episode of the or [00:02:00] Financial Pharmacist Podcast. A PHA has partnered with YFP to deliver personalized financial education benefits for A PHA members throughout the year, a PH a’s hosting a number of webinars, covering topics like student loan, debt payoff strategies, home buying, investing, insurance needs, and much more.
Tim Ulbrich: Join A PHA now to accelerate your professional journey and access these educational resources. A PHA has been my professional organization home for 20 years, and I hope you’ll consider joining as well. If you’re not already a member, you can join a PHA at a 25% discount by visiting pharmacist.com/join and using the coupon code yfp.
Tim Ulbrich: Again, that’s pharmacist.com/join using the coupon code yfp. All right, so here’s what’s happened. Over the last week. I lost $110,000 in a five day span, and as I mentioned at the top of the show, if you look back to the peak of December of [00:03:00] 2024, my IRA is down $170,000 alone. And when I add in other investment accounts such as a 401k, Roth IRAs, brokerage accounts, and even some of the 5 29 accounts, these losses total well over a couple hundred thousand dollars.
Tim Ulbrich: This can make anyone feel nauseous. Right? Especially when I think about the grind that it was in the first five to 10 years of investing to build up the beginning of the nest egg. And just like that in five days, more than 10% gone, or at least gone for now. And we’ve seen some of the markets continue to be volatile, but rebound on some level after even starting to prepare these notes.
Tim Ulbrich: By the time I publish this episode, who knows what The rest of the week, the rest of the month, the rest of the year is going to bring in the current volatile market that we’re in. Now, for some of you, I suspect your losses are much greater than mine, and for others, maybe much less. Regardless, it’s these moments of uncertainty and [00:04:00] volatility that present a real opportunity to remind ourselves of important points when it comes to long term investing.
Tim Ulbrich: If we allow this space as painful as it can be, if we allow this space, these moments can be a great teacher. So here are eight lessons that I’ve learned throughout my investing career that I’ve been reminded of over the last couple of weeks with the volatility that we’ve been experiencing. Number one is that loss aversion is real.
Tim Ulbrich: If you’re unfamiliar with that term, loss aversion tells us that we feel the pain of a loss more strongly than the pleasure of an equivalent gain. And this is true in many areas of our lives, and investments are no exception. And as I think about my own portfolio, the significant gains that were had throughout the fall and the early winter, they feel like a distant memory.
Tim Ulbrich: While the losses, I feel those at a much [00:05:00] deeper level. That’s what we’re talking about with loss aversion and sure there’s a recency bias, but when I think of other market dips that I’ve, I’ve experienced and lived through the 2008, 2009 recession, the COVID-19 pandemic, although that was short-lived, it was a significant dip.
Tim Ulbrich: I remember and feel those losses. More than I feel the wins, and as we’ll talk about here in just a moment, this does is despite the wins, outperforming the losses and lasting over a longer period of time. So the more we can acknowledge the reality of loss aversion, then the more systems we can put in place to mitigate decisions being made based out of our feelings, because that’s the risk with laws aversion.
Tim Ulbrich: So the challenge for today’s investor, for you, for I is that we live in a time period where the speed of information, right? We have a 24 hour seven news cycle, social media algorithms, information is always in front of us, and that speed of information travels such [00:06:00] that loss aversion, that feeling can be amplified.
Tim Ulbrich: So it’s hard to sift out what is noise and what is valuable information. If you’re looking for more information, not only on loss aversion, but on behavioral biases and how they impact how we approach our money, I highly recommend checking out the book, the Behavioral Investor, by Dr. Daniel Crosby. I.
Tim Ulbrich: That’s number one. Loss aversion is very real. Number two is we don’t know as much as we would like to think that we do, suddenly everyone and their brother is an expert on global trade and tariffs. And with all due respect, even if you have a PhD in economics, you can’t predict the future. Just look at all the varying opinions that are out there by economists right now, especially when the driving force of the volatility that we’re experiencing is inconsistent.
Tim Ulbrich: Tariffs have been on, tariffs have been off, tariffs have been on, tariffs have been off. And what we know, we’ll talk about this in a little bit, is that markets don’t like uncertainty. [00:07:00] So there’s humility and knowing what we don’t know, as Sam Rowe has a great newsletter, if you wanna check it out, Sam Rowe said in a recent, uh, version of his newsletter, given all the unknowns surrounding the tariffs causing the market volatility quote, if you know where things are heading, then you probably don’t know what you’re talking about.
Tim Ulbrich: So humility, not overconfidence is essential when we are navigating uncertain and volatile markets. That’s number two. We don’t know as much as we think we might know. Number three is that a strong foundation is key. Now, if you’ve been listening to the podcast for any amount of time, you’ve heard me talk extensively on repeat about the importance of a strong.
Tim Ulbrich: Financial foundation to our mindset and how we approach our financial plan and down markets and periods of recession. I know we’re not there in the moment, but down markets and periods of recession are yet another reminder of how important it is to have a [00:08:00] solid financial foundation. Because if you’re handcuffed with credit card debt, or if you find yourself without a fully funded emergency fund, two things that are critical to a strong financial foundation, a down market.
Tim Ulbrich: Puts a magnifying glass on any fears or anxieties or stress that we have related to our financial plan. Right? It heightens the emotional sense that we have, and this can certainly lead to or has the potential to lead to prematurely selling off investments, changing your asset allocations to be more conservative or even pulling back the amount that you’re saving, right?
Tim Ulbrich: The amount that you’re contributing to various investment accounts. And what we know, we just talked about this with loss aversion, is that we typically don’t wanna make those emotional decisions in the moment. So the stronger the financial foundation that we have, the stronger our mindset is to weather the storm.
Tim Ulbrich: And for some, to potentially use the down market as an opportunity to take calculated risk. As Warren Buffet once famously said, quote, be fearful when others are [00:09:00] greedy and be greedy when others are fearful. So that’s number three. A strong financial foundation is key, especially when we’re in periods of a volatile market.
Tim Ulbrich: Number four is that we wanna understand the difference between risk tolerance and risk capacity. Now if you’ve ever filled out an investment questionnaire. You’ve already scratched the surface on this topic, and maybe you didn’t even realize that you were. But to truly design an investing and retirement strategy that’s both effective and sustainable, it’s important that we consider and understand the difference between risk tolerance and risk capacity, because if we don’t account for both.
Tim Ulbrich: Our plan may unravel quickly the moment the market gets choppy. So what is risk tolerance? What is risk capacity and what’s the difference between the two? Risk tolerance? Think of this as the emotional side of investing. It’s about how you feel. I. It’s the gut check. [00:10:00] When the market drops 10, 15, 20%. It reflects your comfort or discomfort with uncertainty, with loss, with volatility.
Tim Ulbrich: So in short, it’s how much risk you can stomach. I. Right. It’s the emotional component here. We’re talking about risk capacity. On the other hand, measures how much risk that you should perhaps take based on your goals, based on your timeline, based on your savings rate, your income, and your overall financial picture.
Tim Ulbrich: One is emotional, that’s risk tolerance. One is more mathematical. That’s risk capacity. And if we don’t consider both of these. We’re gonna be in trouble, right? If we’re taking on more risks than we’re comfortable with, we’re in a down market. We’re in a period of volatility that might really challenge us and lead to decisions that we don’t want to make.
Tim Ulbrich: So we wanna consider both, and we wanna stress test both so that when the volatility occurs, not if, but when the volatility occurs, we’ve already thought through how we’re gonna handle those situations. So that’s number four, [00:11:00] understanding the difference between risk tolerance and risk capacity. Number five is diversification.
Tim Ulbrich: Now we all know we’ve, we’ve heard the importance of diversification and we often though, talk about this within an asset class, right? For example, the mixture between stocks and bonds within a 401k or within an IRA, or if we get maybe a little bit more granular, it could be the different types of stock, domestic stock, international stock, small companies, midsize company, big size companies, or even we might think about diversification as different sectors of investments, tech.
Tim Ulbrich: Energy, healthcare, utilities and so forth, and diversification in this manner, right? We’re talking about within an asset class, within stocks or within bonds. That’s important. It’s important that we do that, and we do that according to what we just talked about, our risk tolerance and risk capacity. But so is it also important to think about diversification across various asset classes?
Tim Ulbrich: So when I think about my [00:12:00] long-term investing plan. At a high level, it includes three main buckets. The first bucket is what I consider traditional investments. This would be things in the form of traditional and Roth IRAs, 4 0 1 Ks, brokerage accounts, and so forth, right? Probably where a, a majority of people have their investments stored.
Tim Ulbrich: The second bucket I think about is real estate. Our primary home as well as some commercial real estate investing. And the third one I think about is the equity, the value of business. So there’s traditional investments, there’s real estate, there’s business equity. I’ve talked about this before on the show as a three legged stool.
Tim Ulbrich: And that stool may or may not be appropriate for others, right? And it’s not that those legs of the stool are always equal, but they’re diversified. And while various sectors of the economy are certainly interconnected. The volatility that we’re seeing right now in April of 2025 is disproportionately impacting my traditional investment bucket, that bucket number [00:13:00] one.
Tim Ulbrich: But it’s not so much impacting, at least not yet the other two legs of the stool. Right. And that’s in part the value of considering diversification not only within an asset class, but between different asset classes. So that’s number five, diversification. As we think about eight lessons learned through the recent market volatility.
Tim Ulbrich: Number six is that fear in the market is real. It’s very real. One thing is certain, and that is that markets do not like uncertainty, right? That’s exactly what’s happening right now, and we have a lot of uncertainty. If we look at a week or so ago, within a single day, we had market swings as just one example.
Tim Ulbrich: Of how you might look at that and say, you just can’t predict this stuff. Right. This was a Sunday night going into a Monday. On Sunday night, Dow futures were down over a thousand points. Then the day began and we started to see the, the, the, the Dow actually rise because there was an unfounded [00:14:00] claim on a small X account that President Trump was considering a three month delay on tariffs.
Tim Ulbrich: That was determined that it wasn’t. A substantiated, uh, fact that was coming from the administration markets then reacted. This is all within the same day, markets declined, and then there was news that the treasury secretary was having ongoing negotiations with Japan and some other countries, and the markets started to react to that.
Tim Ulbrich: All within a day. And so the markets do not like uncertainty, and that’s just an example of one day in the back and forth and uncertainty that we’ve been having. So one gauge of fear or one gauge of volatility in the markets is measured by the VIX, which is the Chicago Board Options Exchange Volatility Index.
Tim Ulbrich: You can look up the VIX symbol. And just to give you a point of reference, the VIX was hovering in the mid-teens. Since the fall and jumped to over 50, uh, earlier this month. Now, the last comparable spike like this, or the last 10 [00:15:00] years was in March of 2020, which of course was the beginning of the pandemic where it briefly jumped above 80 and then it came back down.
Tim Ulbrich: So again, markets don’t like uncertainty, and this measure, this one gauge of uncertainty in markets. The VIX is certainly telling us that we’re in a period of uncertainty. So. Hold on tight, right? That’s the reality of where we’re at. And you can expect volatility as long as there’s this level of uncertainty, both when within a day, within a week, within a month, for as long as this may go on.
Tim Ulbrich: So that’s number six. Fear in the market is very real. Number seven is that long term horizons for investing can really give us a good amount of clarity, but short term, not so much. Not so much. So if you’re investing for the long term history tells us that the market will take care of us. Yes, past performance is not an indicator of what’s to come, but it is helpful [00:16:00] information.
Tim Ulbrich: And if we think about this in the context of what we already talked about, which is we don’t know as much as we think we might know. The past can be an anchor to steady our ship as we enter unchartered waters. So if we look at the s and p 500 index from the early 1940s to the early 2020s, we are reminded of two very important points.
Tim Ulbrich: Number one is that bull markets, these are up markets where we have market growth. Bull markets on average, lasts much longer than bear markets, which are the down markets. Lemme say that again. Bull markets or up markets last on average much longer than bear markets or down markets, but because of loss aversion, it does not feel like that, right?
Tim Ulbrich: So even though the, the historical data tells us that the, the markets doing well, those runs are longer. But in those down markets, in those bear markets, we [00:17:00] feel that more, right? So we kinda lose that perspective. The second important point we need to look at and consider is we look at the historical data of the s and p 500.
Tim Ulbrich: Just as one data point is that any one year span of the stock market can be quite volatile, right? And historically we see an annualized rate of return range, meaning if we look at the last 90 or so years, we see a range as low as 37 points down to a loss of 37% in the market to as high as a 50% gain within the market.
Tim Ulbrich: So in any one year, we could expect that there’s going to be some volatility, right? That’s why we, we think about this in terms of long-term horizons. If I, if I have funds that I need in the next year, I’m not thinking about investing those in the stock market because of the volatility might go up, might go down, might be somewhere in between.
Tim Ulbrich: But if we zoom out and look at any 20 year span, we see that it’s less volatile and usually is up into the right. With actually having a historical [00:18:00] annualized rate of return range from positive 0.5% to positive point 13.2%, right? So it starts to flatten out a little bit. So sure, those upsides may not be as high.
Tim Ulbrich: I, I gave you the range of negative 37 to 50% plus, but pretty much up into the right, when we look at historical 20 year rate of returns, and in fact we have yet to see. Over the last 90 years, we have yet to see a period of the market where there’s a 20 year span that had a negative rate of return. So if we’re in it for the long term, we can have some level of confidence.
Tim Ulbrich: Again, past performance may not be predictive of the future, but it certainly is helpful information. So that’s number seven. As we look at long-term horizons can give us some clarity and maybe a little bit of peace of mind. Short term, not so much. Number eight, as we continue to talk about time, is that time horizon, your time horizon of meeting these funds matters a lot, right?
Tim Ulbrich: I’m [00:19:00] 41 years old and assuming that I’m able to stay healthy, I plan on working for a long period of time. I love the work that I do because of that, my time horizon to needing the funds. That I have invested when I started at the top of the show, that couple hundred thousand loss, right? My timeline to needing the funds allows for room to take on risk knowing that there may be some big dips, such as the one that we’re experiencing now and, and in fact, historically.
Tim Ulbrich: The data tells us that we should expect these dips. This, the, the world markets and the events that are leading to these certainly are different or perhaps somewhat unique, but the fact that there’s a negative return and the markets are quite, quite volatile in the moment that that’s not unique, right to, to our generation in this time period.
Tim Ulbrich: Now that said, if you are listening and you’re much closer to retirement age, or you’re recently retired, the sequence of returns risk tells us that your portfolio. [00:20:00] And what my partner Tim Baker, calls the eye of the storm, right? Approximately five years before and five years after retirement. Your portfolio in the eye of the storm needs to be carefully constructed to minimize the impact of negative investment returns that can have long-term detrimental effect, right?
Tim Ulbrich: Because if we’re in that time period, we’re having to make our investments more conservative, or we’re actually pulling those funds out if we experience negative returns and we’re hit. In a significant way by them, then we’re gonna solidify those negative returns. We’re not gonna have the time span for the market to correct and to bring those back up.
Tim Ulbrich: So that’s our last point as we think about what is your time horizon to, in, to, to needing these funds to retirement? And is your risk tolerance, right? Is your risk capacity constructed in a way that aligns with that? So what do we do with all this information? Right? I believe that if we develop a plan, [00:21:00] if we develop a plan that accounts for our goals, our risk tolerance, our risk capacity, and the vision that we have for living a rich life today and tomorrow, we need to let that plan be our guiding star.
Tim Ulbrich: Sure we’re gonna adjust from time to time. Life happens, things change. But we don’t prematurely react in moments of crisis like we’re in right now, if you want to call it a moment of crisis, because we have a plan and we’ve thought about this in advance and we’ve stressed, tested these things in advance, and we’ve considered what we would do in these difficult seasons.
Tim Ulbrich: So once we have our plan, we let our plan do the work. As Daniel Crosby said, the author of the Behavioral Investor, humans are wired to act. Markets tend to reward inaction, and that is hard, right? Because as humans we wanna take action. So we have to be aware of that bias. Now, if you’re listening to this, say, Hey Tim, I could really use [00:22:00] some guidance with the financial plan.
Tim Ulbrich: Our team at YFP, our team of fee only certified financial planners, we are here. We are ready to help. So whether you’re managing finances on your own, if you’re DIYing it or you’re already working with another advisor and you’re thinking, Hey, I could use some extra help, our team of CFPs is ready to jump in and support you.
Tim Ulbrich: Here’s what sets us apart from the crowded wor world of financial advice that is out there. Number one, as you all know, we are pharmacy focused, so for nearly a decade we’ve worked with pharmacists at all stages of their careers. Whether you’re finalizing your plans for retirement, you’re in the middle of your career trying to balance the demands of today in preparing for the future, or you’re on the front end of your career, wading through student loan debt and big life changes.
Tim Ulbrich: We have experience working with pharmacists, clients throughout all stages of their career, and we understand the unique opportunities and challenges that pharmacists face. Number two is that we’re fee only. We don’t earn commissions or sell financial products, [00:23:00] which is very common in this industry. It’s a fee only firm.
Tim Ulbrich: We’re paid for the advice that is given. There’s no hidden agendas, really focused on recommendations that are in the best interests of the client. Number three is we have a fiduciary commitment. As a registered investment advisor, we’re legally and ethically required to act in the best interest of our clients all the time.
Tim Ulbrich: Now, that probably sounds like it should be a given, but not all financial professionals are held to the standard. The next thing that really sets us apart is I. Our team, every member of our planning team holds, holds the certified financial planner designation, which we believe is the gold standard in financial planning.
Tim Ulbrich: Earning it requires rigorous education. Passing a challenging exam. Think of something like the NPL with a lower pass rate. This past cycle, about 62%. It requires 6,000 hours of experience and a commitment to ongoing ethics and education. What also sets us [00:24:00] apart is we do everything virtually and we’re nationwide.
Tim Ulbrich: We serve pharmacists, households all across the country. We’re currently in 41 states and counting as of March, 2025, and we do this through virtual planning meetings, which really makes it easy for our clients to connect with our planning team. Finally, I think one of the most important things that often gets overlooked in the financial plan is we focus and plan beyond the numbers.
Tim Ulbrich: Financial planning isn’t just about investments. It’s about aligning your money with your life. And through our scripture plan process, we help you build a comprehensive plan that supports your vision for living a rich life today while preparing for the future. Covering everything from debt to retirement, budgeting, to estate planning, and much more.
Tim Ulbrich: So if you’re ready to take the next step, you can schedule a 60 minute discovery call with my partner, Tim Baker. You can go to your financial pharmacist.com. Top of the homepage, you’ll see an option to book a discovery call. And on that call we’ll learn. Learn more about your goals, we’ll walk you through our [00:25:00] services and ultimately see if it’s a good fit to work together.
Tim Ulbrich: All right. Well, that’s our show for today. I hope you took something away from those eight lessons learned in the market volatility that we’re experiencing right now. Hold on tight. I think we’re gonna be in this phase for a while. And before we wrap up the show, I wanna again, thank our sponsor of the American Pharmacist Association, A PHA Is every Pharmacist Ally advocating on your behalf for better working conditions?
Tim Ulbrich: Fair PBM practices and more opportunities for pharmacists to provide care. You join A PHA at a 25% discount by visiting pharmacists.com/join and using the coupon code YFP. Thanks again so much for listening to this week’s episode. If you like what you heard, do us a favor and leave us a rating and review on Apple Podcast, which will help other pharmacists find the show.
Tim Ulbrich: Finally, an important reminder that the content in this podcast is provided for inve informational purposes only, and is not intended to provide and should not be relying on for investment or any other advice. [00:26:00] Information in the podcast and corresponding materials should not be construed as a solicitation or offer to buy or sell any investment or related financial products.
Tim Ulbrich: For more information on this, you can visit your financial pharmacist.com/disclaimer. Thanks so much for listening. Have a great rest of your week.
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