The recent steep drop in the stock market thanks to the COVID-19 crisis has made many investors jittery. And, no one can predict if the market will continue to fall or when it might come back. This is an excellent time to talk to your Financial Advisor. You should be prepared with questions. The answers will help you navigate these uncertain times.
At times like these, it is hard not to worry about the impact of this market downturn on your financial future. You should have worked with your financial advisor to develop an investment strategy designed to meet your goals. Your advisor will be able to review this strategy to ensure it still makes sense for you.
Panic is not the friend of any investor. And often, as the stock market drops, people tend to want to sell their stock investments. Remember, investing is a long-term process, and in the long term, equity markets perform very well. Tell your advisor if you have had a change in your personal or family life that impacts the amount of risk you are willing to take.
Financial advisors should manage your portfolio balance based on your financial goals and strategy. Now is a good time to discuss if you need to rebalance. You may want to improve the amount of cash or liquidity you have at this time to help weather the storm. Your advisor can help you re-allocate funds to meet both your short term and long-term needs.
As we said earlier, investing is a long-term proposition. Many financial advisors and their clients will see this as a time of opportunity to buy stocks and ETFs at a discount. This strategy is particularly useful if you have a longer time horizon. Ask your advisor to help identify and time your purchase of new investments.
Unlike many brokers, a financial advisor has a responsibility to put you and your money first. They do not gain from moving money or buying and selling stocks, and their advice should be based on your goals and your stage in life. If you sense that is not the case, it may be time to move on. At times like this, you want to know you can pick up the phone and talk to someone you trust.
Creating a sense of financial well-being helps reduce stress and lets you sleep better at night. Take advantage of the advice your financial advisor offers. If you don’t have an advisor, please give us a call. We will listen to your concerns and make suggestions to help you weather this storm. The consultation is free.
From our family at Kirwan Companies to yours, we pray that you, your family, friends, and valued employees remain safe and healthy as we work together to succeed and defeat this crisis.