It’s tempting to abandon your financial plan when the world is experiencing unprecedented circumstances. Although the pandemic is new and scary, don’t let the headlines play on your fears and knock you off your path.
History shows that recessions and recoveries are filled with short term spikes and falls. These short term events often serve as a distraction to our long term goals. Having a financial plan and sticking with it through the ups and downs has proven time and again to give you the best chance of success.
In truth, the greater potential danger to our financial plan is not the pandemic and market volatility – it’s inflation (the loss of purchasing power in the future). If you react to the headlines and lock in your losses by withdrawing from the market you are also pulling your money from the opportunity to keep up with inflation and therefore, running out of money in retirement.
Stand firm and trust your plan. Feeling unsure? Give us a call.
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this video will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. Moreover, you should not assume that any information or any corresponding discussions serves as the receipt of, or as a substitute for, personalized investment advice from Leading Edge Financial Planning personnel. The opinions expressed are those of Leading Edge Financial Planning as of 05/06/20 and are subject to change at any time due to the changes in market or economic conditions.