How Coronavirus Can Impact Your Financial Future
2020 has had a tough start here in Australia – first, with the extensive bushfires that blazed through our country causing severe damage, and now with the coronavirus pandemic (COVID-19) and the probability that it may impact more than just our health.
The impact of coronavirus has been building since February of 2020 and adding pressure to the already strained financial markets. The impact has been global, as the outbreak continues to make its way even through quarantines and economic isolations, affecting markets the world over. And this impact has been seen trickling through and affecting us here as well.
Among the many economic disruptions that the outbreak is seen causing are lower valuations and increased volatility. Kristalina Georgieva, the Managing Director for the International Monetary Fund (IMF) has called it the world’s “most pressing uncertainty.”
As the situation continues to unravel, you may feel concerned that there could be some negative implications for your finances and that the health of your financial future may be at risk. But as in all matters, we urge caution, discretion and prudence. Talk to your financial advisers before making decisions based on pure emotion, continue monitoring the situation and staying informed.
For life and disability insurance policy holders, one good news is that life risk insurance policies generally don’t have exclusions for pandemics and so, should the worse happen and you need to claim on your policy, you should be covered.
Here in this week’s blog post, we touch on this sensitive and debated subject. How can coronavirus impact your financial future? And what can you do to manage its impact on your finances?
Implications for investors
As investors, you must carefully consider the ramifications of the outbreak and review your financial documents in a timely and proper manner. Preferably, together with your financial advisers.
Here are a few options for your consideration:
Investments should be in accordance with your risk profile.
Together with your adviser, reassess your goals and timeframes.
Together with your adviser, evaluate your risk tolerance.
Together with your adviser, ensure that you have diversified your portfolio.
Reach out to your financial adviser about any questions or concerns that you may have.
Ongoing monitoring and action
As the coronavirus outbreak continues, we may see a further slowdown in business activity. With weaker demand for goods and services, we could see business profits and wages struggling in the short term. While this may be temporary, it is important to stay informed and continue monitoring the situation for updates.
Here are a few do’s and don’ts when monitoring the situation:
Confirm the validity and legitimacy of your sources while following news and updates.
Refrain from falling prey to social media manipulation, panic, misinformation and chaos. Conduct independent research.
Take your financial adviser’s guidance and advice into consideration while making your decisions.
Talking to your financial adviser
The upheaval and turmoil caused by the outbreak can lead you to feel confused, stressed and worried. If these periods cause undue stress and worry and/or you have questions regarding your finances, we encourage you to talk to your adviser.
In the long term, it is expected that all confusion will settle, and everything will return to a state of normalcy. In the meantime, it is crucial to stay calm and rational and reach out to your advisers for necessary guidance.
As we always say, when it comes to financial planning, there’s no time better than now!
At Oakmont, our trusted and highly experienced advisers can show you how you can reach your financial goals faster and seamlessly. Even in the current distressing circumstances, our advisers can help you navigate the market with confidence and ease and make the best possible decisions.
Safeguard your financial future. Talk to us and see the difference we can make.
General Advice Disclaimer
The information contained on this website and in this blog-post is general in nature and does not take into account your personal situation or circumstance. It is recommended that you consider and use the information provided responsibly and, where appropriate, seek professional advice from a financial adviser.
Although every effort has been made to verify the accuracy and correctness of information, Oakmont Financial Group, together with our consultants, officers, agents, and employees, disclaim all liability for any loss or damage suffered by any persons directly or indirectly relying on this information.