Posted by Jill Boynton on May 7, 2020
It is nearly impossible these days to avoid all the bad news out there about COVID 19 as well as its effect on the economy. Even if you don’t watch any news programs, every TV commercial and newspaper ad reminds us of “these trying times”. Uncertainty about many things – such as how long we’ll be staying at home or out of work, or the long-term effect on the economy – is high in our minds. Uncertainty can lead to fear, and fear can lead to action based on emotions instead of rationale.
Now is not the time to panic, but it is the time to take steps to protect your financial future. Set aside an emergency fund of 6-12 months of living expenses. Curb spending and try to save more money (this should be a little easier since we have nowhere to go!) Don’t sell your investments, and in fact consider buying into the low markets. Revisit your retirement plan and see if you need to take any steps to keep it on course. Be proactive, not reactive, to combat some of the uncertainty.