Watching headlines about stock market tumbles, temporary trading halts, and further spreading of the new coronavirus can create fear and even panic. More importantly, this news can distract us from more critical, and more personal, goals.
At times like this, we think it’s important to remember that the financial plans and investment portfolios created for you were intentionally crafted with your specific situation in mind. You’ve worked with your financial advisor to create a strategy appropriate for you.
While none of us could predict the global spread of a new virus or the speed of this market correction, these events are not unprecedented. Our financial planning and investment approaches take into account, among other things, your risk tolerance, time horizon, and known withdrawal needs. We build plans and portfolios that are intended to weather the ups and downs of an unpredictable market.
As we are inundated with constant news of uncertainty around the world, it’s often hard to remember that even bad situations can create opportunity. Just as we couldn’t predict the timing or events leading up to this correction, we also can’t predict the timing of or news that will lead to a recovery. What we do know is that we don’t want to miss out.
With that in mind, now is the time to remember and adhere to our long-term plans. Now is the time to continue funding company-sponsored retirement plans, IRAs, and Roth IRAs. Now is the time to continue education savings and investment plans. Now is the time to stay diversified. Now is the time to continue, and possibly accelerate, dollar cost averaging investment plans that are already in place. Now is the time to stay disciplined and weather the storm.
More importantly, now may also be the time to turn off the television, take a walk, and remember that you are not in this alone. We are here to help guide you, help you stay the course, and help you find perspective along the way. If you need some of that perspective and support now or at any time, please don’t hesitate to reach out to us.
This article is for informational purposes only. This information is not intended to be a substitute for specific individualized tax, legal, or investment planning advice as individual situations will vary. For specific advice about your situation, please consult with a lawyer or financial professional. Indices mentioned are unmanaged and cannot be invested into directly. Past performance is not a guarantee of future results.