{"id":411,"date":"2020-05-12T15:30:20","date_gmt":"2020-05-12T15:30:20","guid":{"rendered":"https:\/\/normandygroup.com\/?p=411"},"modified":"2020-05-12T17:15:11","modified_gmt":"2020-05-12T17:15:11","slug":"are-my-savings-coronavirus-prepared-do-i-need-a-financial-advisor","status":"publish","type":"post","link":"https:\/\/normandygroup.com\/financial-planning\/are-my-savings-coronavirus-prepared-do-i-need-a-financial-advisor\/","title":{"rendered":"Are My Savings Coronavirus Prepared? Do I Need a Financial Advisor?"},"content":{"rendered":"

The coronavirus pandemic has affected billions of people around the world, closed wide areas of the United States, and shuttered schools and businesses that are just now beginning to cautiously reopen.\u00a0 It also caused financial markets to plummet.\u00a0<\/span><\/p>\n

Let\u2019s discuss ways to get your financial life balanced. Contact The Normandy Group today!<\/b><\/a><\/em><\/h2>\n

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A coronavirus-inspired stock market slide began in late February and eventually put broad stock market indexes such as the Dow Jones Industrial Average (DJIA) and Standard & Poor\u2019s 500 (S&P 500) in bear market territory, defined as a<\/span> 20 percent decline<\/a><\/strong> or more.\u00a0 (It should be noted, though, that the DJIA and S&P 500 rebounded in April, too, posting the <\/span>best month since the 1980s<\/a><\/strong>.)<\/span><\/p>\n

As a result, investors in Lakewood, Colorado may be asking two related, pressing questions:\u00a0 Do they still need a financial advisor in a bear market?\u00a0 Are their savings coronavirus prepared?\u00a0<\/span><\/p>\n

We\u2019ll briefly answer the first question.\u00a0 Yes, you should still consider the services a <\/span>financial advisor in Lakewood, CO <\/a><\/strong>can offer.\u00a0 Advisors can assist you by creating custom investment, <\/span>tax, and estate planning strategies<\/a><\/strong> to help you thrive financially and achieve your goals.\u00a0 In fact, you may find that financial advisors are arguably more important in a bear market than ever.<\/span><\/p>\n

Now, let\u2019s move on to taking a closer look at the second question:<\/span><\/p>\n

Preparing Your Financial Strategies<\/b><\/h3>\n

It\u2019s easy to feel panic and dismay if stock markets are sliding and you\u2019re invested in the financial markets.\u00a0 Economic pain is widespread right now, with unemployment at all-time highs and closed businesses at record levels as well.\u00a0<\/span><\/p>\n

However, the answers to the question \u201care my savings coronavirus prepared?\u201d depends very much on a variety of aspects of your financial well-being.\u00a0 A crucial factor of anyone\u2019s financial well-being is your savings vehicles.\u00a0 If your savings are primarily invested in stocks, you may have lost money on paper.\u00a0<\/span><\/p>\n

It\u2019s important to emphasize that all stock losses are paper losses until you actually sell the underlying asset.\u00a0 That\u2019s one reason that stock market investors would do well not to panic and sell in times of dropping markets.\u00a0<\/span><\/p>\n

If bonds play a role in your savings, depending on what types of bonds you hold, you may find that the stock market drop may not have impacted these holdings as drastically. Coronavirus-inspired interest rate cuts may mean that bond yields going forward will be at historic lows.\u00a0 The story is similar if your savings are in cash.\u00a0 You may have realized small net gains due to the low interest rate environment.\u00a0<\/span><\/p>\n

Both bonds and cash are valuable in any financial savings plan.\u00a0 They may add stability to a portfolio by adding a level of diversification which creates a lower correlation to equities.\u00a0 This can possibly minimize your overall portfolio risk, resulting in a \u201csmoother\u201d ride in times of stock market volatility.<\/span><\/p>\n

The better question, perhaps, is <\/span>where you go<\/a><\/strong> from here.\u00a0 Your long-term strategy is thus more important than simply reacting to shorter-term events.\u00a0 What could benefit investors now is to evaluate their actions with regard to three interdependent factors that determine long-term strategy:\u00a0<\/span><\/p>\n