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COVID-19 and Market Volatility: Why Financial Planning is Crucial

Is the recent market volatility caused by the Coronavirus pandemic making you question your financial situation? 

You aren't alone.

COVID-19 has had a detrimental effect to the global economy. Fear has been instilled into investors across the globe, and the United States is feeling the same pain. Although seeing "the red" is far from enjoyable, this major economic shift is a great time to analyze how your personal financial situation is structured. The real question is: Do you have a financial plan?

The common misconception is that investment management is financial planning. If you have a 401(k), IRA, trust account, or another type of investment account that you are saving into, you are only just beginning the process. Saving and investing is commendable, but what does it all mean? You might be looking at your account balance after these past few weeks wondering how this pandemic and economic down-turn will effect your financial goals. 

Here are some questions to ask yourself:

  • If you had to take a distribution from your investment account, what position would be liquidated? Is there a specific strategy behind that choice?
  • Are your investments allocated appropriately for your risk tolerance and time horizon?
  • Are your investments set-up and chosen for tax efficiency?
  • Are you positive, negative or neutral cash flow?

Horizon Advisers has a passion for true financial planning. This is not just investment management - it's a plan tailored to your situation to instill confidence in the times we are facing right now. Financial planning involves cash flow analysis, saving and investing, tax and estate planning, distribution strategies and risk management. When you have all of these boxes checked, you feel much more comfortable when unforeseen market downturns, such as the one caused by the infamous Coronavirus, are unfolding. 

Are you ready to work towards achieving financial confidence? Horizon Advisers is here to serve. 

Prefer e-mail? Please contact info@horizonadviser.com for more information. 

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