Things right now seem crazy: this pandemic has had ripples across all parts of our lives. Panic toilet paper buying, closed businesses, insane Facebook relatives, and cabin fever are only half of it: the reason you clicked on this blog is the other half. We are seeing financial instability across the board, with bull and bear runs on the market that can make calling it “volatile” an understatement. We’re telling our clients to hold off on joining the panic: the reason you invested with us is the same reason to continue to.
COVID-19 Will Pass; Your Financial Needs Won’t
Do you know the saying, “This too shall come to pass?” It is something Registered Investment Advisors (RIAs) have been telling clients since the birth of the stock market. From the recessions of the 1980s to the subprime mortgage crisis, those who have weathered these the best are the ones who stayed in, paid attention, and made choices based on data rather than panic. This is what we do.
Patience is More Than a Virtue
Here at Beck Bode, patience is a core part of our approach to wealth management. All the best things take time, and investments are no exception. We wait, we watch the research and analysis, and then we execute – going off half-cocked to buy or sell is a recipe for disaster. Long-term success comes from long-term planning: trusting your “gut” is not enough.
Now More Than Ever, Advisors are Here to Help
We have been proactively speaking with our clients. Uncertainty is what is causing the panic, so this communication is key. The last thing clients want is radio silence from their financial advisors. We’re here to help: phone, email, and video chat – Zoom, Google, Facetime, or Microsoft Teams: pick your poison.
Factors to Consider When Talking to Your Advisor
It is important to talk to your investment advisor about your financial plan, but there are things to think about before you pick up the phone.
- Your Business and COVID-19: If you own a business that has been impacted or closed due to state orders, do your research about state and federal support before talking to your RIA.
- The Stock Market’s Highs and Lows: Even months in, we see halts, bear, and bull markets. The market might be volatile, but it’s not crashing. Our Director of Financial Planning Misty Lynch has a great blog post breaking this all down.
- Don’t Fixate on a Single Part of Your Financial Plan: It can be easy to focus on just the short term or long-term parts of your financial planning. Just as wealth management is so much more than retirement planning, it’s important not to short-change your other goals.
What You Should Be Doing During COVID-19
Lastly, we’d like to give some advice outside the world of financial planning. Even as we adapt, we’ve all got blind spots that can hurt us and the ones we love.
Don’t communicate just with your advisor. Now more than ever, talk to those important to you. Don’t stop at email or phone, get face to face on one of the billion video chat apps.
Look after your health. Focus on the safety and security of yourself and immediate family. While you take care of proper social distancing and hand washing, we will be on the frontlines taking care of your financial health.
Be awesome to each other. You’d be surprised how much even a little help can make a difference right now. Talk to friends and family you have not seen in a while or are in affected areas. Offer advice and material support. Look towards the nonprofits in your area that can use the help.
Here at Beck Bode, we don’t just take wealth management seriously: we focus on navigating and embracing the change – both good and bad – of the financial market. We are approaching COVID-19 with cool heads and open eyes. Whether you’re a current client or are interested in our unique approach, we urge you to contact us. We are here to help. Stay safe and wash your hands!