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Corona Virus And Your Wealth Planning

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In speaking with Jim Teegarden of Impact Wealth, we find he brings a different perspective to the marketplace and how it effects wealth management. First of all, Jim notes that a market recession is nothing new, and history tells us we have one every 10 years or so.

The H1N1 virus from 2009 infected about 60 million Americans, leading to 12,000 deaths in the USA alone. While not to make light of the current situation, it is important to point out that the markets recovered and eventually went higher.

We've had tech bubbles burst before and even a market correction of about 20% in 2018! And again, the markets rebounded.  With stocks going down  now, and trust eroding on a daily basis, it's hard to do what Jim really recommends: Stop, write and plan.

Stop panicking. Easier said than done, but you have to ask yourself: is this market turn effecting my lifestyle now? Has anything changed financially for you? Was there a death, divorce, major illness or business liquidity? If not, it's a bit easier to keep from panicking.

Can I still continue living the way I do now? Do I have the time to wait for the eventual rebound?  Can this be put into historical perspective?

Jim recommends writing down what you did when the market crashed in previous years. Did you sell? Did you come back in? Did you re-enter or reinvest in a measured, planned way? Did you have a plan then that you followed? Where are your buckets of money and how are they allocated? Did you decide then whether or not you have the stomach for market fluctuations?

Let's look at the tough issues. Are your loved ones taken care of if something happens to you? Are your children and parents properly provided for? Is now the time to diversify into some debt financing, private equities, real estate and indexed insurance (which is a performing asset)? 

Do you need more exposure to cash flowing assets? 

And most importantly, can we plan a measured approach instead of trying to time the market?

It's hard to calm people in a frenzy. But it's fair to point out that people who invested in stocks after the 2008 market drop enjoyed a 14% (depending on portfolio) annual return for a decade.

Let us know how we can help. Jim is available at jim@impactwealth.com

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