In turbulent times, when markets fluctuate and unemployment rises, you may find yourself worrying about basic questions: What if I can’t retire? What if I lose my job? What if I get sick? What if I outlive my retirement plan? This is where an advisor can make all the difference.
Manish Kaushal is the Associate Vice President of Wealth and Business Solutions at SCU and Mutual Fund Investment Specialist with Credential Asset Management Inc. His advice is to get yourself off the emotional roller coaster during these periods.
Wealth advisors understand that you’re not just concerned about markets. They know there may be times when you also want to talk about health concerns and planning for retirement. “Very often, they’ll talk about the emotional side of investing,” Kaushal observes. “One of the big advantages of going through your investment plan is a wealth advisor can help you get off the emotional roller coaster with a solid plan to prepare for the future.”
Even in times of instability, it’s a good idea to avoid reacting suddenly to the stock market and go over your long-term investment plans with your wealth advisor. “We look at the planning we’ve done, the reasons we’ve chosen this path, the quality of the assets, and the stability of the companies in the portfolio,” Kaushal says. Think of this planning process like getting ready for winter. You know there will be occasional storms, so it’s all a matter of being prepared.
There are a few approaches you can take, including reviewing how your investment and retirement plans are performing given the short and long-term shifts in markets. You can also look at how your portfolios might change in value if the market rises or falls. A wealth advisor can also walk you through possible changes in your investment strategy, such as when your plan to retire. Those exercises can provide you with a better sense of how much volatility you are willing to accept.
As you approach retirement, the conversation will shift from building wealth to protecting your portfolio. Our wealth advisors will also discuss your post-retirement lifestyle goals and how to plan for your estate, such as having an up-to-date will.
Although the 2008 – 2009 credit crisis was a very difficult time, Kaushal notes many investors who went through that decline adopted a patient and conservative stance when the markets dropped during the pandemic. “Investors who went through that crisis understand that with every correction, markets have a tendency to rebound,” he says.
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*Mutual funds are offered through Credential Asset Management Inc. Mutual funds and other securities are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.