Page 11 - Womanition_Alberta_North_2020

3: Keep your emotions in checK
Mixing money and emotions is rarely a good idea. As it relates to your finances, pinpoint what your emotional triggers are and how you react to them. Maybe you’re a stress shopper, or you’re considering selling some of your investments because of recent market volatility.
Having a plan not only for dealing with the unexpected but for meeting your short- and long-term goals can help you avoid self-destructive behaviour and manage your emotions around the stock market. A goals-based financial plan can allow you to focus less on annual returns and day-to-day volatility in your investments and more on outcomes and whether you’re achieving your targets.
It’s important not to let your emotions take over when making financial decisions. For example, try to maintain your investment strategy and allocations even when the market is fluctuating wildly. Don’t buy into investor herd mentality or fear what the market is doing. Remind yourself that no one can predict the future and that short-term market movements have little impact on long-term wealth.
Likewise, don’t get overexcited about the effects of a possible recovery on your investments and let your emotions cloud your judgement. Stick to the investment plan you developed and stay the course. Making regular contributions if you can and reinvesting distributions is a proven approach to successful long-term investing. If you are concerned that current events may jeopardize your long-term financial goals, then we can schedule a time to review your existing plan and make any necessary adjustments.
4: replace panic with preparedness
When it comes to financial planning, panicking, or reacting to the news isn’t a helpful approach. Use this time instead to get a handle on your financial situation, including having enough in emergency savings. It’s about saving what you feel is necessary to give you comfort.
Although the deadline for filing 2019 income tax returns has been extended to June 1, 2020, consider filing now if you are expecting a tax refund to help your cash flow and cover your expenses. (Next year’s deadline TBA) Even for those who owe, it is better to know sooner than later what you need to plan for in terms of taxes due, particularly with the extra time to pay this in 2020.
If you anticipate financial hardship due to COVID-19, our infographic outlines some of the main financial relief available from the federal government. There are several questions to consider before you sign on to one of the support programs. Before taking advantage of any of these programs, remember that I am here to help you review your finances and offer guidance.
your overall health
Better mental and physical health, higher productivity and increased confidence in handling money matters are just a few of the benefits of good fiscal health. While our current environment can be unnerving, staying calm and taking actions to manage your financial wellness will position you to weather the storm.
Part of my role as your Financial Advisor is helping you feel prepared financially, and it’s never too late to start. We can work together to create or review your financial plan to ensure it meets your needs and helps you sleep better at night. This includes accounting for contingencies that may result from this crisis – everything from changes in your job or living situation to supporting your family members.
For more ways to improve your financial health now and over the long term, contact our office today.
1 Global News, “44% of Canadian households report lost work amid COVID-19 pandemic: poll,” March 25, 2020.
2 Financial Consumer Agency of Canada, Financial Stress, and its Impacts, 2018.
*Please note that all comments are of a general nature and should not be relied upon as individual advice. The views and opinions expressed in this commentary may not necessarily reflect those of IPC Investment Corporation.