By Christopher Price, CFP®, RICP®, ChFC®
Since COVID-19, many of us have been left to pick up the pieces of our businesses and our investments. With such an unexpected hit, it’s been difficult to find the confidence to plan for the future again. Even some of the wealthiest people saw their portfolios take a dip without warning, which was extremely concerning for investors.
When the financial markets take a hit, or what I like to call “defy gravity,” it can be difficult to figure out what to do next. And if you don’t know a trusted professional who can help keep you focused on your long-term goals, it can become even more disorienting. The good news is that there are ways to plan for volatility to help and safeguard your wealth and your business.
The Purpose of Financial Planning
The thing about financial planning is that it only works if the plan is in place. The strategy is to stay ready so you don’t have to get ready. In our experience, it’s better to realize your financial goals beforehand, instead of blindly approaching life situations. That’s why it’s important to discuss what you care about most with a trusted professional.
Do you want to ensure your child’s college fund is taken care of? Or better protect your inheritance or estate? By taking a proactive approach to financial planning, you can help ensure that your wealth is protected and positioned to take advantage of potential opportunities—even during a crisis.
Assess Your Investments
It’s common knowledge that a diversified portfolio can help during volatility as the markets return to normal. This means investing your wealth into different sectors and using different investment strategies to create a well-rounded portfolio. Overall, diversification can help protect your portfolio when the markets are volatile.
For example, since COVID-19, the real estate market has been extremely hot. This was mostly due to the U.S. instating an eviction moratorium that protected many people from losing their homes. And although this federal law protected renters, it didn’t do much for investors dependent on real estate to feed their families or keep their businesses afloat. This is where diversification can be a critical component of your financial plan.
Practice Healthy Financial Habits
When disaster strikes, many investors are familiar with the knee-jerk reaction of wanting to sell all your stocks or buying more shares to counteract the market. Many times, this can be one of the biggest mistakes an investor can make.
If the markets are taking a major downturn, the first thing you should do is consult with your financial professional. He or she can show you appropriate strategies to consider moving forward. A licensed financial professional can help you not only focus but organize your financial life. There is always opportunity and a strategy for every season.
Get Started Now
It rings true that some investment and tax opportunities are time-sensitive; the same strategy you used last year might not be as effective this year. That’s why you need a trusted professional to guide you through the changes to help create the financial stability you desire.
As an advisor, I can help you through even the most unpredictable situations. I understand the strategies that can either hurt or help your unique situation. When it comes to time-sensitive decisions, I can help you develop personalized strategies based on your individual goals and objectives. If you’re interested in learning more about protecting your finances, reach out to me at chrispricefinancialplanner.com/contact-us/
Christopher Price is a financial advisor and investment advisor representative at Coastal Wealth, a full-service financial planning firm dedicated to going the extra mile to serve its clients with excellence. With over 10 years of experience, Christopher works with high-net-worth and business owner clients, using an educational approach to guide them through the opportunities and challenges they face so they can pursue their goals with confidence. Christopher is known for building long-lasting relationships with his clients and for providing a safe environment for clients to ask questions, receive honest and understandable answers, and become empowered to make the appropriate financial decisions for their lives. Christopher graduated from Susquehanna University with a bachelor’s degree, double majoring in finance and entrepreneurship. He also holds the CERTIFIED FINANCIAL PLANNER™, Retirement Income Certified Professional® (RICP®), and Chartered Financial Consultant® (ChFC®) professional designations. Christopher’s passion for education has led to him partnering with his community to provide workshops on a variety of financial topics that are designed to help financial literacy and confidence. He also founded a not-for-profit organization called Invest in Knowledge, where he and his team coach the community and local organizations through their financial journeys.
When he’s not working, you can find Christopher exploring his many interests and pursuing his extensive goals, including studying for his pilot’s license, traveling, playing baseball or golf, enjoying the ocean outside his front door, or taking his dog, Ranger, to the dog park. He also loves to donate his time and money to local charities and causes he cares about. To learn more about Christopher, connect with him on LinkedIn.
**Asset allocation does not guarantee a profit or protect against loss in declining markets. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio or that diversification among asset classes will reduce risk.
The views and opinions expressed are those of Christopher Price. Christopher Price’s views are not necessarily those of MM Investor Services LLC or its affiliates.
Christopher Price is a registered representatives of and offers securities and investment advisory services through MML Investors Services, LLC. Member SIPC (www.SIPC.org). 1000 Corporate Drive, Fort Lauderdale, FL, 33334. (954) 625-1351** CRN202404-2233715