As the public health authorities remind us every day, the COVID-19 crisis is a challenge that we will overcome together if we all follow the same guidelines.
Paradoxically, the story is very different when it comes to the individual choices facing us in today’s circumstances with respect to our finances and investments. Since the onset of the crisis, the many calls received by our Advisory Services have shown us a very wide range of different situations. Some calls are from concerned retirees in their drawdown phase, others from professionals suffering a setback during their accumulation phase, and still others from young clients experiencing their first bear market. In contrast, some clients want to take advantage of the drop in stock prices to invest their available cash. It goes without saying that these different situations call for distinctly different strategies.
Given the circumstances, the various recommendations for investors that we see all over the media and social networks can create a degree of confusion. In reality, there is no one thing called “investors”: there are people, and each one is different.
So I would like to invite you to contact us, whenever you feel the need, to talk about your particular situation with one of our Advisory Services representatives.
In fact, now is a good time to review your financial objectives, whether these take the form of a retirement projection or a roadmap for reaching a specific goal. While doing so, people often recognize that a savings plan is all about the long term, which can help to put short-term downswings into perspective.
It also allows for a realignment with realistic targets. A decline of this magnitude reminds us that the double-digit returns of past years cannot be sustained. On the other hand, the past also teaches us that years with negative returns rarely tend to be repeated. One thing about the financial markets is that the returns are not linear: they fluctuate from year to year around an annual average that can only be expressed over time. That’s why it is essential to keep emotions out of the equation when experiencing larger fluctuations than usual, on the upside as well as the downside.
In addition, if you have yet to establish any financial projections, this could be the ideal time to do so with one of our advisors. Our new Client Portal also has a very practical tool to help you set goals and track your progress.
So I encourage you to be sure to get professional advice to give you some perspective in the face of the great uncertainty created by current events. Regardless of the amounts at stake, we are all facing a challenge along with some decisions that are extremely important – but unique to each of us.
During this unprecedented period, rest assured that we are here for you and that our Advisory Services department is fully operational. We are open at the usual times. Don’t hesitate: give us a call.