The COVID-19 pandemic and its effect on our economy has touched millions of lives. Many have lost their jobs, or their loved ones are now unemployed. Others are concerned with their assets decreasing in value as the stock market declines. However you’ve been affected financially by the pandemic, you are likely wondering what basic steps you should be thinking about now.
We’ve answered a few of the most common questions we hear from our clients:
How should I adjust my budget?
Evaluate your monthly budget to determine where you might be overspending. Even if you or your loved ones are temporarily employed, it’s wise to start thinking about the money that you could be saving for your emergency fund or future investments. Identify where you can save on areas such as entertainment or subscriptions you’ve long forgotten about.
Once you’ve audited your spending, take stock of how much money you can save per month and where that money will do the most good. In this case, if you don’t have a fully-funded emergency account, now would be a great time to contribute to it. You can also talk to your financial advisor about the best ways to invest the money you’ve saved.
How do I begin adjusting my financial strategy?
As the market falls, unemployment rates rise, and a stimulus package goes into effect, your financial strategy will need attention. Southwestern Investment Group recently published an article on 9 Financial Tips to Handle a Decline in the Market that provides you with some of the considerations you need to recalibrate your long-term strategy and stay on track.
Should I sell my investments?
No, you should not sell your investments. In fact, we know from economic crises in history that this is actually a great time to buy and the worst time to sell. Those who are patient, calm, and stay in the market will be happy they did when the economy bounces back.
What can we expect from the market going forward?
The market’s inherent uncertainty makes it impossible to know what’s up ahead. However, the Dobyns Wealth Team does have a philosophy for handling situations like these. According to Jeff, “We have no control over the uncertainty; we can control how we respond to it. Or, ideally, how we don’t respond. Long-term, goal-focused investors like us focus on the big picture.” Read the full update on COVID-19 and market volatility for more information.
How will the CARES Act affect me?
The CARES Act was signed into law on March 27, 2020. This stimulus package will affect millions of Americans who are navigating adjustments to their lives and finances during the pandemic. Southwestern Investment Group also recently published an article on What to Know About the CARES Act, which shares the basic provisions of the act and a few of the ways it could affect you and your family.
How can I alleviate financial stress?
If you are experiencing financial stress, there are several resources to turn to. Many companies are doing their part by deferring payments or freezing interest to help you bridge the gap. A few offices to check in with are your mortgage lender, bank, insurance company, credit card company, and internet service provider. Make a list of every bill you have and see what types of relief they are offering their customers.
Above all, your financial advisor can ease your worry. We serve as your financial ally and give you the confidence to make the best moves to protect your assets. We can help you stay on track to meet your goals, even as the economic uncertainty grows.
We are here for you. We understand the challenge this financial crisis poses for you and your family, and we want to help you take control of your future. Contact us to discuss your financial situation and how we can build a long-term plan to meet your needs.
