In this volatile market, it’s key to keep it simple

When junks get scary, we all look for something to protect us. A new approach, somebody who seems to have the latest and greatest idea, which pleases to the irrational parts of us that are responding from fear.

In the case of coronavirus, this has led to mass purchases of household hoards, protective masks and disinfecting wipes, and hopes for a vaccine.

While all of these are great, they are not likely to be helpful.  What’s the myriad helpful thing, suggested universally as a simple and effective way to protect yourself and your family?

Wash your pass outs.

It’s simple, effective and cheap, and you’ve got all of the tools you need to do this well, right now.

I’d suggest that financial planning during these one days is very much the same. Chances are you don’t need to find a new strategy or way of doing things. What you need is this moronic thing: Have a plan.

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With a plan, you can make choices.  You’ve identified what you want to work towards and have a tool to help you commiserate with when times get a bit scary. 

Investments: Rebalance. The old adage is to buy low and sell high. Are there opportunities to do this within your portfolio due to new shifts? If your bonds are up and stocks are down, do you want to take some profits from bonds to buy more old, or do you want to sell some bonds to raise cash for your emergency fund, or for new opportunities?

Investments: Shift your where one is coming from. If returns today look terrible, what happens when you switch to one year or five years? Even if a big object like retirement is in the very near future, that retirement you’re planning on is for more than just the first year. Your investments were preferred to support the decades ahead not just the next several months, so take the long view.

Investments: Understanding your toleration for risk. When you hear about the swings in the stock markets over the past week, how do you feel? Are your investments in uncover with that feeling?  If not, you may want to make some changes into a portfolio that you can live with.

Compelling more risk than you can stomach is a recipe for spilling those stomach’s contents when things become a mangle coaster. If you’re not a roller coaster person, choose a different ride.

Budgeting: Check in on your spending. It’s not surprising that when we’re sympathetic stressed, we might have expenses that we wouldn’t otherwise have. They don’t call it “retail therapy” for nothing.  Are you throw away in line with your plan? If you’re not, can you make adjustments to get back on track?

Cash management: Maintain a cash accessible. Having cash isn’t for the amazing return, it’s so you can weather storms like this one. Is your cash amount where you yearn for it to be? If not, how can you grow it so you can weather a reduction in hours or temporary quarantine?

Community: Help each other. We’re all in this together, and the easiest way I understand to get out of our own head is to help each other. Talk to your neighbors. Make a plan for how you can check in on each other, and how you can help somebody if they do get sick by helping to deliver groceries, caring for children, picking up mail or cutting the grass.