Even the headlines from half a world away can impact your bottom line. It’s best to pay attention – and find a financial advisor who’s reading the same news, too.
From economic turmoil in Greece to military actions by Russia to the spreading of disease, world events can – and likely will – impact how you feel about your financial security.
It’s not that the events themselves are affecting the investments long-term; it’s how investors react. When something that all of us should be paying attention to happens, investors only need to turn to their financial advisors for guidance. They will talk you through it.
Here are three keys to getting through tumultuous times:
1. Communication: If something is worrying you, talk it out. Wescott advisors are up-to-date on the latest headlines and have the experience and expertise to discuss which investments might be impacted by world events in the short-term.
2. Diversification: Spreading out your wealth is the best defense for downturns in a specific sector. Include enough liquid assets in your portfolio as a safety net that can last through extended periods. Liquidity will make opening quarterly statements during the bad times a little easier to handle.
3. Discipline: No one knows the specifics of the next major news event, but everyone knows one’s coming. Planning ahead with a sound wealth management strategy will allow your Wescott advisor to keep your fear as well as your desire for high returns well balanced and keep you on target for your long-term goals. In other words, your advisor will be able to talk you off the ledge.
When the next major headline hits, don’t worry. Before you react too severely, be sure you understand the context of history and how the markets have reacted to similar past events.
What results? A personalized plan for your next steps, not a reactionary move guided only by fear or a political opinion.
If you would like to hear how Wescott Financial Advisory Group can help you through troublesome times, contact us here.