We are all hearing more about the silver linings from this quarantine/social distancing experience. A slower more quiet pace of life has been embraced by many people stuck at home and distanced from their normal rhythms. At home outdoor activities by children and adults alike have been renewed and have replaced the busy run-around schedules so many of us try to keep during normal times. Adults have re-discovered the joys and satisfaction of tasks like gardening and home improvement projects, while children have improved their tree climbing, bike riding, and mud puddle jumping skills.
As normalcy slowly but surely creeps back into our lives, what elements of this slower pace of life will we keep and what will be lost? Just like financial planning should be thoughtfully and intentionally planned for, I would encourage you to thoughtfully and intentionally plan towards what your life and schedule will look like as we recover and normalize over the next few months. If there are things about this situation you truly enjoy, you will have to make conscious decisions to retain them.
This week’s Weekly Market Review contains some hard to swallow financial statistics regarding the impact of the COVID-19 virus. The ramifications of this economically difficult time not only will stress the balance sheets of the government, but also programs like Medicaid, Social Security, Pension Funds, and of course your own portfolio. Your own portfolio is the only one of those you have any control over. While many investment decisions are difficult right now, in my opinion, one decision is very easy. If you own stocks or equity based funds and you have a time horizon for those investments of more than a couple of years you have to hold them.
Don’t take it from me though. This link takes you to a three minute audio clip from JP Morgan which is one of the world’s leading asset managers. If you own equity based investments, give it a listen as it should instill confidence that your investment portfolio will rebound in time.
If you have elementary age children in the house you may be looking for fun and entertaining educational curriculum. As you already know, I’m a big proponent of financial literacy. I think one of the most valuable things a child can be taught is how to be a good money manager. Our friends at Jackson National have a powerful and fun program called Cha-Ching I’d like to introduce.
To learn more about “Cha-Ching” follow this link https://www.cha-chingusa.org/.
Click HERE for the Weekly Market Review
Have a great week.
Trevor N. Coe, CFP®