If the pandemic has taught us anything relating to personal finance, it’s that it’s never too early to plan and be prepared for a crisis of any sort. However, in a world of challenging markets and added stressors, it takes more than investment guidance to help you move forward with confidence. It takes an understanding of your entire financial situation, your goals and a clear road map for getting where you need to go.
While we’ve seen our fair share of ups and downs in the market since the beginning of the pandemic, it is important – now more than ever – to keep your eyes on your financial goals. Investors need to understand the pandemic is no more than a slight bump in the long road of investing and shouldn’t be a factor in deciding whether to deviate from your investment plan.
Rosalie Schlaen
History has shown us that the odds favor the long-term investor. During uncertain times, asset allocation (diversification) is the most important element to decrease risk and improve investment outcomes. Doing this successfully requires patience and fortitude to be able to avoid the market noise and focus on your financial plan. Sometimes the riskiest financial move is to do nothing.
The pandemic has also changed many things, including an increase in online shopping and e-commerce options for all industries. With more and more do-it-yourself investment apps coming on the market, people are taking their investments into their own hands, leading to fluctuations in the market we’ve rarely seen. While utilizing these apps and technology may make you feel more in control of your own financial future, they make it harder to avoid the lure of the latest hot stock and the fear of missing out. Increasing risk for minimal reward does not favor the long-term investor.
However, these changes have reinforced a crucial part of long-term financial planning: the need for active listening and constant communication. It takes an experienced professional to cut through the static and understand what is best for the investor’s financial future.
I have built my career as a trusted financial advisor by guiding high-net worth domestic and international clients to meet their financial goals. If you are interested in looking at your current financial plan or would like to meet with a financial advisor for the first time, please contact my office.
Rosalie Schlaen is first vice president of investments and an international client advisor at Pinnacle Investments, LLC (Member FINRA/SIPC), 20801 Biscayne Blvd., Ste. 450, Aventura, FL 33180, 786.988.7623 and PinnacleInvestments.com.