You’ve doubtless heard the refrain countless times over the past couple of weeks. It’s good advice, certainly. We have seen the worst of what we become when societies are consumed by panic.
All the same, the advice can ring hollow. The world unfolding before us today is like the movies we spent money to be entertained by just weeks ago.
It is reasonable to worry. And one of the areas that consistently generates the most worry is money. It is reasonable to be worried about your money. That’s why we write this column.
How do you worry without panic? We ask this as our company fervently plans to fundamentally change our business operations, working from home, socially distancing, but also implementing plans to serve our clients remotely. For some period of time, our fundamental way of life, of which work is just a small part, will be altered.
Of course, there is the standard advice we give to all of our clients. Think long-term. Don’t let the headlines interfere with your goals by making you think short-term. Aim for diversification. If you have funds available, now might be a good time to buy low. Consider a Roth Conversion.
Don’t get us wrong. That’s all great advice. But that, too, can ring hollow.
When we sat down a while back to decide what we’d write about this month, we originally thought about election season. One of our favorite pieces of advice when it comes to elections is to ignore the doomsday provocateurs. The same person who predicted the 2007 stock market crash predicted the 2016 and 2005 crashes that didn’t happen. A stopped watch is right twice a day.
But, at the end of the day, their clock is still stopped. Things will get better. The markets will settle down and, if history is any guide, recover relatively quickly. That has been the case with other pandemics, including the Spanish flu. By all indications, a vaccine will be available, even if it takes a year or so to get it to the masses.
Even as we’re confined to our homes for the foreseeable future, it’s important to keep our watches moving. If a conversation with your advisor helps you look forward, by all means do that. If it just means getting outside for some fresh spring air, that works too. Binge-watching television? Just don’t overdo it. But don’t fall for doom and gloom.
At the end of the day, this is what investing is all about. We set aside a bit of our treasure now with the confidence we have a future, our country has a future, and that future will, inevitably, get brighter.
You believed it then. You proved it with your actions when you started investing. There’s no reason not to believe it now.
So don’t panic.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This article was originally published in the Pioneer Press. You may view the article here.
Series 7, 53 & 63 Securities Registrations,1 Series 65 Advisory Registration,† Insurance License
Peg was attracted to the financial services industry early in her career. She feels fortunate to be able to use her 30 years of in-depth knowledge working alongside Preston, the Roundtable™ and their staff to prepare clients for retirement. A lifelong learner, she enjoys collaborating with her team to stay on top of the best practices regarding comprehensive planning. ...Read More