Quick tips on personal investment strategies resulting from Coronavirus
In many ways, the stock market has crashed. Fast and furious. The headlines on all accounts are scary for any investor to say the least.
It’s days and weeks like these that test the resilience of my clients and my ability to stay calm, centred and focused when discussing how their Retirement Savings & Investment Portfolios are doing.
This is when the voice of reason of a Financial Planner is needed to remind you to stay invested. Yes, to change a few strategies if need be but never move to the sidelines because when sanity returns the market can very swiftly bounce back.
If you are currently investing your finances, you most likely are in one of these three groups:
- If you are young and in financial investing for the long haul, I recommend increasing your monthly contributions and/or add to your portfolios. By long haul I mean 5 years or more.
- If you are within 2 years of converting your accounts to income creation accounts, then the goal would be to have a cash wedge strategy in place.
This is where you have 1 to 3 year’s worth of income set aside in safe investments like High Interest Savings or 1- & 2-year term deposits with the rest of your money continuing to be invested.
This way if or when the markets drop in value you are not selling investments that have lost value; instead, you are taking income from your cash wedge. - If you are already taking income, check to see what investments it is coming from.
You want to take your income in times like this from investments that haven’t dropped too much in value (unless you are implementing tax loss/gain strategies). If you can postpone taking income right now and have other resources, then do that for now.
This is general information based on common sense and my 30 plus years of experience. Because everyone’s situation is unique, you should consult with a licenced professional to give the proper information and advice that is ideal for you and your needs.
But most of all, don’t panic. The market and your investments will recover. Maybe quickly or maybe over time. They will never recover if you sell on fear-based emotions and park it in savings.
Feel free to reach out to me if you need to hear the voice of reason. I am always available to help.
Barb Wallick
About the Author, Barb Wallick
Barb Wallick works with women who are looking to Create a Life They Never Want to Retire From.
A Personal Financial Planner, with 35 years experience along with her 3 Coaching Certifications, Barb truly guides her clients starting with Creating Clarity of Purpose, Goal Setting, Releasing Money Blocks using Time Line Therapy ® and practical Financial Planning.
For more information, visit www.barbwallick.com or find her on Facebook at www.facebook.com/barbswallick
