Coronavirus: Elaine King Advises How To Protect Your Finances

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

The alarming figure on the number of people who have applied for unemployment benefits across the country illustrates the deep economic damage that the coronavirus crisis is also causing, which has led to the paralysis of much of the economy.

More than three million people applied for unemployment last week after the wave of business, restaurant, store and factory closings. In response, Congress approved a historic package on your mortgage, cell phone, electricity, water, food and insurance this Friday if you lose your income.

Make sure you understand the investment advice you receive

In these turbulent times, listen to your financial advisor and blindly follow their advice on buying or selling without understanding why it will confuse you the most. Always ask for an explanation and some education with data. For some, now is a wonderful time to buy stocks. Most of my financially independent clients want to take advantage of falling prices.

Really understand your risk tolerance

Imagine how the sale of a large percentage of your portfolio will affect you in three years. Or how about buying stocks at a discount? How will you feel about that in three years? It is useful to imagine the decision in three years because, like the COVID-19 virus curve, over time, the volatility of the downstream market will stabilize. You are asking yourself this question to try to understand what you can tolerate now and what will give you more financial peace in the meantime. Will you feel better knowing that you didn't lose anything because you didn't sell? Or maybe you will feel better knowing that you sold some stocks that were for the real reason that you can tolerate and the possible consequences of your decisions. Looking to 2023 and the ray of light from a future world that is not in crisis will help you make better decisions. We have a lot to build and impact the world.