To Set the Foundation for your Financial Future

We don’t know what the next six months might bring. Nobody does. Black swan events like Covid-19 bring a host of uncertainties to the economy, to the markets, and to our own financial circumstances. It’s understandably stressful. But they also bring opportunity: opportunity to change course, to take a more honest look at your financial universe, and to start making the proactive decisions in your tax management and investment strategies that will result in real, positive change. The world will advance beyond this, and those who act proactively will the reap the long-term rewards.

We can’t control a lot right now. Our day-to-day lives. Our work. Maybe even our health…it’s all scary to think about. And as we all know, we definitely can’t control what’s going on in the stock market. So let’s make sure that we’re controlling the areas of our life and our finances that we can.

How do we do that?
There are three tips:

1. Know that having a portfolio is not the same as having a plan: A true financial plan takes into account your spending habits, your savings rate, your dynamic tax bracket, your goals, and your investments to answer one continuously evolving question: Are you on the right financial track? Your investment portfolios are probably in rough shape as the markets fluctuate, but having a comprehensive plan will allow you to see the forest through the trees and realize that nothing has changed in your family’s roadmap just because the market is correcting…
2. Know that you have different buckets of money for different goals: Money has purpose and should be treated with the intentionality it deserves. Having a Three-Bucket Plan (Now, Soon, Later) ensures that you are well positioned for the uncertainties of tomorrow because you have accounted for the different phases of life & their varying time horizons. Devising your own three-bucket plan means knowing that some assets are meant to let you sleep at night, some are geared towards generating income in the near term, and some are designed to grow aggressively for 20+ years.. The numbers change over time. The buckets don’t.  Fintech News
3. Know that nothing has changed for you as a long-term investor. The market right now is EXTREMELY volatile…and that understandably causes fear! We all just need to hold onto one truth: market volatility is normal, and so are market corrections! In fact, volatility is the price we pay for long term higher gains. Understanding this historic and undeniable fact will give you the fortitude and the faith to keep holding on…which is the single best decision you can make for your financial future right now. After all, we don’t know which direction the next 25% market change will be…but we’re crystal clear on the next 100%.