We acknowledge that you may be worried about the economy, including inflation pressures or a recession. Moreover, we have seen recent research that suggests people are sitting on high levels of cash. This can be a dangerous time and it remains an important time to be grounded by your financial goals.
To support you, I’d like to share some financial tips for your interest, which may help you given the current state of the economy and markets. If any of the following interests you and you’d like to explore our professional opinion, please reach out as we’d be delighted to help.
- Assess Appropriate Product Options for New Money
We always want to keep your financial aspirations and risk tolerance in mind, with different products available. Whether you want to “sleep at night” or “capture the discount”, we should be able to guide you through your options.
- Review Other Value Drivers, Such as Tax Arrangements
All too often, investors think in pre-tax terms. Whether we look at our wages or our investment returns, many of us fail to consider tax implications. A financial tip that can potentially help is to consider tax-loss harvesting during market setbacks, which research
shows can help increase after-tax returns.
- Review Your Goals Post Pandemic
It is a healthy exercise to review your goals at regular intervals, but this is especially important today. Research shows that as much as 71% of people change their top 3 goals by doing a simple review exercise, which is quite remarkable and appears especially likely as we come
out of the pandemic.
- Ask Yourself… “Am I Nervous or Fearful?”
Every investor will endure downturns on their journey, yet it is the ability to reflect and learn from the lessons that make for sound investing. Having gone through another downturn, it is worth marking down the lessons, including the fears or questions that drove your thinking. Research shows that behavioural coaching can add meaningful value – acting as a steady hand when you need it.
- Rebalance with a Total Viewpoint
As markets move, we encourage you to adjust. Rebalancing is not foolproof, but it can potentially help manage risks, avoiding unwanted market drift. It is mostly used at the portfolio level, but you can do the same at a personal level – looking at everything from property to cash, and the ratios of each that you hold.
Summary
The above ideas are intended to nudge good investment behaviour and help provide a broad perspective on your financial journey. We hope you found them insightful. To reiterate, if you’d like our professional assistance in implementing, we’d be delighted to help.
