It's easy to check the market everyday and think all your money, retirement, and hope is lost. Let us help put you at ease, keep reading for basic tips and helpful resources of steps you can take during this bear market.
The headlines about the Coronavirus and reports of how it will impact the economy and potentially lead to a recession are all a cause for concern. Not to mention the wild swings in the stock market. The full impact of economic activity slowing and mandatory shutdown of many businesses is yet to be seen. Fidelity has a great article on the economy and Keeping Markets In Perspective.
We've compiled a few highlights of what we've been reading of basic tips and strategies to manage any financial crisis
Research shows that the worst days for the market are often closely followed by the best days.
For retirement investors, staying in the market means you’ll be ready for those big gains.
Data from the financial crisis show just about how long it took investors who stayed in to recover.
According to research from JP Morgan those who stayed invested during the 2008-2009 financial crisis fared better than those that didn't.
Quick Tips & Strategies
Don't Constantly Check Your Account. Checking your account daily or even weekly may lead you to make an emotional financial decision you'll regret. The closer you are to retirement you'll want to make sure you have a solid financial plan and are disciplined with your distributions. If you are nearing retirement you'll want to work closely with your financial adviser on your risk tolerance and develop a risk management strategy. This could include re-balancing your portfolio. to make sure you have the right amount of your portfolio in stocks, bonds, and cash based on your time frame and comfort with risk.
Continue Your Contributions. If you aren't affected and are still employed continue your contributions to your retirement plan. This will enable you to dollar cost average and purchase stocks at the low prices to average out your cost basis.
Become More Frugal To Save More Cash. This is a worldwide unprecedented event, so you'll want to make sure you have access to cash. Boost up your emergency fund and begin cutting back your spending where you can. Being inside helps, but think about your Amazon purchases and general online shopping, try to only purchase essentials. As you hit your savings goals, give yourself a small reward.
Forbes has a great article on your Pandemic Financial Solution, giving you the how to stick to the above strategies.
If you don't have a financial adviser they'll tell you the same as the advice above. If you'd like to speak with a financial adviser we have partnerships with them go ahead and contact us and we'll pair you with the best adviser for your needs.
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