Kovid-1 has changed many aspects of our lives, from the way we shop to the way we work. But how has it changed your financial life?
0% of Americans say their financial well-being was negatively affected by Covid-1 by. Below are some ideas about how financial life has been affected and how to manage them.
Scenario: Your income has been reduced – or dropped.
Your spouse may have been laid off or your work schedule may have been reduced. You may have had to leave the workforce for health reasons. This is when liquid assets (such as a bank account) play an important role in your financial planning, as you may have to tap into emergency savings.
What to do next: Start by asking some key questions: Can you make money on a temporary job? How should your budget be adjusted? Do you have enough savings to retire early? Our leisure income calculator can give you a clear picture of where you stand.
Scenario: You had to retire early
During an epidemic, workers 55 years of age or older experience the highest rate of job loss. ** After struggling to find a new job, many are choosing to retire. If you are facing an unplanned retirement, there is something you can do to make the transition easier.
What to do next: Start by looking at your costs. Is there anything you can cut or reduce right now? You may also want to devise a strategy for debt: Some debt recipients are open to discussing payment plans, especially in times of economic uncertainty. See our guide on Unexpected Retirement.
Scenario: You had to be late to retire
Conversely, some had to work longer hours than they planned because their retirement savings were hit. When you are rebuilding your home egg, try to hang around the market conditions every day. The good news is that more and more people are going out and spending, which can help improve the economy. *
What to do next: Avoid big changes like choosing investments outside of your risk tolerance. If you have to adjust your financial strategy, try to make retirement your top priority. Above all, do not be discouraged; Delaying your retirement may be the wisest decision for your future.
“Throughout history, investments have been subject to a kind of law of gravity: what goes up must go down, and oddly, what goes down must go up.” ***
Jack’s armpits, Founder of Vanguard
– Jack Bugle, founder of Vanguard
Scenario: You do not have a complete financial plan
Even if Covid-119 doesn’t affect your employment or finances, you can still fine-tune your plans for the future. Maybe you have some savings but you want to organize your money into clear objectives. Defining your goals further is a smart way to gain control, even if you have financial security.
What to do next: Make sure your investment plan defines achievable goals. Having a clear vision for your future can help you make the best decision for your investment. If you have savings for multiple purposes, consider opening a new type of account, such as a 529 savings plan.
Scenario: You haven’t experienced any major financial changes
If you are not financially affected by the epidemic, the scenes above are still a good reminder of the importance of emergency savings. Practice reviewing your plans periodically to make sure you are on track to meet your goals. If you feel good about your situation, share these ideas with neighbors or family members who are worried about their financial future.
Although we are not all facing the same challenge, we have all experienced some level Change. The good news is that you can prepare for retirement or any financial goal – even in the midst of the economic shocks of Kovid-1. We are here to support and guide you so that your failures turn into successes.
* Katherine Timque, 2021. How Kovid-1 has changed our saving and spending habits.
** Christine Benz, 2020. What does coronavirus mean for the future of economic planning.
*** Philip Jenox and Stephen Ackett, 2002. Global-Investor Book of Investing Rules: Invaluable Advice from 150 Master Investors. Upper Saddle River, NJ: Prentice Hall PTR.
All investments are at risk, including the potential loss of money you invest.
We recommend that you consult a tax or financial advisor about your personal situation.