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Recession or Recovery? Managing your money during an economic crisis!

Practical steps to consider as you manage your finances through this difficult period

Few investors could have predicted that a viral outbreak would end the longest-running bull market in stock market history.

Now that the COVID-19 pandemic has pushed stocks far into bear market territory it leaves many of us wondering what it means for our hard earned savings, investments, and pensions.  More importantly what impact might it have on our retirement plans and our financial future?

While this volatility can cause savers and pension holders to panic, it’s helpful to keep a long-term perspective - as hard as that may seem for us all.  We feel the losses more than we celebrate the gains.  Most importantly, as investors we need to remain disciplined with our investment processes throughout periods of volatility. History has shown that markets will eventually recover and may even reward patient investors.

Black swan events, which are defined as rare and unexpected events with severe consequences, have come and gone throughout history.

This does not mean that we look away from the road ahead, in many ways we should sharpen our attention, with one key caveat – “focus on what you can control”.

It’s difficult to predict how long COVID-19 will impact markets, as its societal and financial disruption is unprecedented.

Never has it been so important to have a robust financial plan in place.

For practical tips around managing your money in an economic crisis please view the video below.

If you would like to pick up a discussion around your own financial planning, please contact us for a no obligation initial discussion on 01786 431703 or email us at info@retinvest.co.uk

 

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