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We’re experiencing one of the biggest periods of economic volatility in history. With fluctuating markets; the temporary or permanent loss of income affecting many; and a growing sense of uncertainty in terms of a return to life as we knew it, the current global health and economic crisis has shaken the ground beneath nearly all of us. You may have even taken some hits, but you’re still on your feet. And that puts you in an interesting position, one where you might be asking yourself, “Now what?”
Right now, it's time to renew, refocus, and rebuild your path to financial wellness.
What We Have Learned from COVID-19?
During times of struggle we learn what’s truly important in life. Using that refreshed perspective, we can find opportunity in uncertainty, and take control of our financial future by developing a financial plan that ensures you—and things that are most important to you—are well-protected into the future.
Here are some of our biggest takeaways many of our clients had through the pandemic:
The Importance of Emergency Planning
If recent events have taught us anything, it’s the importance of having an emergency plan. Of course, no one expected COVID-19, but then again, no one expects to lose their job or have their industry disrupted by new technology, or face any other number of sudden financial hardships that can quickly derail your future. The fact is, it’s likely you’ve had to adapt to something unplanned in your life over the past two decades. COVID-19 is only the most recent example of why you need a solid emergency plan.
Insurance Coverage is Critical
As the virus has swept around the world, you’ve seen how critical health, long-term, and life insurance are to financial wellness. If you or someone you love gets sick, chances are you’d be willing to trade every dime in your portfolio to get yourself or your loved one healthy again. Luckily, you don’t have to make that trade if you’re properly prepared. Money can’t buy health, but smart financial planning can make sure an unexpected illness doesn’t decimate your financial situation.
A Set-Back Can Become A Set-Up for Future Success
Maybe you’ve also learned that you weren’t as prepared as you thought you were. Perhaps you had planned to remodel your home or finally take that exotic vacation you’ve been dreaming about and now, those things don’t feel quite feasible. Or, maybe you’re finding that you won’t be able to retire on time. The important thing is to not be discouraged by these setbacks. Instead, think of this as an opportunity to renew and rebuild your financial wellness.
The Biggest Lesson: An Opportunity for Financial Mindfulness
Perhaps, the biggest lesson we’ve learned over the past several months, is that by appreciating the people and things that are most important to us, we’ve found how rewarding a more financially mindful life can be.
Gone are the days of running out for a coffee or a quick bite to eat when you can just make it at home. Leisurely shopping trips have turned into focused outings, where impulse buys take a backseat to making sure we get everything on our list. By concentrating on the things we need, instead of becoming distracted by the things we want, we’ve noticed that without even meaning to we’re spending less and saving more.
But more than that, because we can’t go out and buy distraction, we’re finding joy in things that don’t have material value. Connecting with family and friends has become more difficult, but more meaningful than ever before. Maybe you’ve picked up a new hobby, or rediscovered an old one. Letter writing, bread making, learning a new language—all the things you’ve wanted to do, but you didn’t have the time for, are now within reach and you’ve discovered the joy these pursuits bring.
This crisis has also made it clear how we’re all sharing one world. You’ve probably reached out to help causes close to home, or on the other side of the planet. You’ve signed petitions, raised awareness, and donated time and money to help others in need. You’ve realized we’re all in this together, and that by doing your part no matter how small, you can bring change to the world.
Renew and Rebuild
COVID-19 has forever changed the world. There’s no going back to normal; there is only the next normal and what you make of it. You’ve learned what’s important to you and gained a new way of looking at life, a simpler, more meaningful way. By taking a comprehensive approach to your financial wellness and planning goals, you can maintain focus on the things that really matter to you, develop a plan to support them, and emerge from this time stronger and more prepared than you were before.
As your financial advisor let us help guide you in developing a plan based on what matters most to you. We can help build your financial confidence and get you moving toward the new goals you’ve discovered during these trying times. When this crisis is over, life may still have a few scary or uncertain surprises in store, but with a financial advisor on your side, you can be sure to stay on the right course, no matter what the next normal brings.
Interested in learning more? Get in touch with our team to talk through your financial goals, and learn how Baker & Associates RIA, LLC can help you achieve them.
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How does your own financial path compare to that of the average American? From opening your very first bank account to tapping into your 401(k) in retirement, life is full of financial rites of passage. As we grow older, we find new opportunities to invest in our futures, either by putting some cash away in savings or by taking on debt to fund our next big step. But whichever monetary benchmark is next on your list, you may wonder where you stand in comparison to your peers.
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This is for all my family and friends who don’t know what to do next. You discovered you tube TV. You have binged watched everything and you’re wondering what to do next. May I suggest you review your financial situation. Don’t leave yet. Help is here.
Corona Exit Strategy, you have got one, right? You have got a strategy for what to do once you’re free don’t you? I mean do you have a plan for how you’re going to get rolling again, Okay, you are doing soooo well that you don’t need a plan that’s cool. I’m done.
For those of you who are still here and you are wondering what is he talking about and why is he talking to me? The answer is because you matter. You matter because you have been through some things. You have had experiences that no one else has had. Your experiences are important. Not only to you but someone can benefit from your experience without going through it themselves and therefore benefit from your efforts.
You’re likely to have used the expression “If I knew then what I know now. I would have made better choices.” I am asking that you share those experiences. I would like you to share your money experiences. You can keep it in the family, but you should share those experiences with those that are important to you. Let them know why you behave the way you do when it comes to money. That includes making it, spending it, wasting it, saving it, or investing it. Why? Because it helps you to unburden when you’re facing tough times. And it could help those that are listening or reading about the experiences of others. These are tough times, believe me you need to unburden. It doesn’t mean you have a solution to the problem(s) you’re facing but you can begin to verbalize your experiences. Even talking to yourself is helpful. Putting your thoughts into words helps to unravel the mental knots that we tie ourselves into.
Let me say here and now that I am not a psychologist. I’m telling you what works for me and what I have prescribed and seen work for others. I am both a Registered Investment Advisor and I am a visiting professor at DeVry University and Keller Graduate School of Management. So that means I do financial planning and I manage people’s money and I also teach those two subjects. I’ve decided during this Covid 19 lock down that this is an opportunity for me to give back by bring together my financial knowledge with my teaching skills.
As an Advisor I will provide a free initial financial assessment and if there is significant interest, I will teach a course on the subject. of personal financial planning.
If you would be interested in receiving a free assessment and / or the possibility of joining a class, then click on the button below to let me know. The tentative plan is for weekly online evening gatherings likely to begin later this year and will last 4-6 weeks with a duration of 60 to 90 minutes per session. The sessions would cover things like savings, investing, debt management, credit etc. Both the theory and the reality. The depth that we can explore is dependent on the number and the knowledge of those that will be attending the session. The object is to assure that you going in the right direction and to create a plan to be executed as we emerge from this Corona lock down. Let me know what you think and get your free assessment.