The coronavirus continues to take its toll. The virus has resulted in 760 million individuals under quarantine, which is unprecedented in human history.(1) From a financial standpoint it is impossible to endorse any estimates of the damage to the economy. The range forecast is very wide and uncertain. However, with history as our guide we believe the economic effect will be transitory.
How does the uncertainty relate to your planning?
Market corrections are never fun, and hard to anticipate. However, as we have discussed in planning meetings short term goals are positioned conservatively whereas long-term goals are positioned for growth. Those dollars positioned for growth will experience more volatility, but as long as you have the time frame to experience that volatility you can navigate that risk. You can read more about our goal-based planning approach here
However, during times like these we do review your accounts, and look for planning opportunities. We have been looking through your accounts this past week, reviewing them for capital loss harvesting opportunities as well as opportunities to re-deploy cash where appropriate. There are unique situations for individual clients that we are reviewing for as well. Additionally, we are in touch with investment managers to discuss the impact of the virus and where they see possible opportunities and risks.
As always if you have questions or would like to discuss any part of your plan, please reach out. Or maybe you just want reassurance that you are OK. We are always here.
Bob Meath, Founder & Wealth Advisor