How to Stay Financially Secure During the pandemic

These are extraordinary and uncertain times we’re living in. As the COVID-19 pandemic continues to sweep the globe, nations are taking unprecedented measures in an effort to slow the spread of the virus. As a consequence, the markets have entered into a state of extreme volatility. Not since 2008 has such an air of dread hung over Wall Street. With each passing day, one central question is becoming increasingly highlighted in the minds of investors: what should I be doing right now to protect my current and future financial situation?

Or do they…?

During a crisis, making major changes to one’s investment portfolio can feel like the sensible thing to do. But the fact of the matter is that the best thing that investors can do in our current emergency is to simply wait and ride out the storm. As counter-intuitive as that may sound, your best strategy for making it through this crisis with your 401(k) and other investments intact will be to stand by and leave them be. In moments of extreme uncertainty — like our present one — it’s far more likely that any attempt to move assets around or take advantage of a supposed opportunity will lead to unintended negative consequences.

The Storm Will Pass

In the end, business will resume, economies will heal, and markets will once again return to a healthy equilibrium. It may take months, it may even take years, but global markets will be revived once the COVID-19 emergency has passed. Until then, try to stay away from making any significant changes to your investment portfolio. And when you find yourself worrying, just remember: volatility is an intrinsic part of investing, and portfolios are built to withstand temporary dips in the market.

Still, we’re well aware that the promise of future stability isn’t enough to alleviate most people’s financial concerns in the present. Over the next few weeks, therefore, our goal is to provide you with simple, effective, and practical financial tips aimed at helping you to navigate the next few weeks and months.

We invite you to join us as we address the following questions in our upcoming blog posts:

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