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The Coronavirus pandemic is clearly going to have an impact on everyone’s financial status. At present, these problems will undoubtedly bring great anxiety to investors.
Hence, we are here to share the 5 important tips to help you go through the panic.
1. Remember markets are resilient
Although the global impact of the coronavirus pandemic is truly unprecedented, this is not the first time that the market has been affected by such an impact.
Despite some serious lows, the market has been recovering in the long run. If you take into account the medium-term or long-term development prospects, the pandemic is likely to be a particularly volatile period in the overall upward curve.
2. Do not panic selling
If you are making a long-term financial plan, we rarely recommend that you sell according to the performance of the market, but in this case, crisis sales is not a good idea.
Now the only sensible choice is to go through this turbulent period, hoping that once the tide reverses, the market will really get better. Usually, these rises are quite dramatic, and you certainly don’t want to miss giving up your equity investment right now.
3. Adjust your financial plan expenses
If you’ve been hit by the economy since the beginning of the crisis, you may choose to cut short-term spending on financial planning during this difficult period.
4. Try to avoid cash withdrawal
Some investors may want to get cash out of retirement savings to get through this difficult financial period. Avoid doing so if you can. This is because from now until retirement, you will also lose any potential growth in your investment, which may be very important.
Governments and financial institutions around the world are stepping up their efforts to provide relief to individuals who have suffered income losses as a result of the coronavirus. It’s worth talking to mortgage providers, other lenders, and utility companies about options to postpone bills and payments, temporarily reduce spending until your finances are back in balance.
5. Future proof investment
If you’ve been receiving investment advice from a professional financial advisor, your financial plan should be designed to withstand events that could mess up the market. Existing tools and processes can do this, such as matching investment risk with your risk profile or diversifying your portfolio.
Nevertheless, it is important to make investment decisions within the context of the overall financial plan.
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