Is Your Financial Pulse Racing? Maintain Peace of Mind During Market Turmoil

Let's review a few recent headlines for a moment, shall we?
"Banking Crisis" "Investors Lose Millions" "Markets in Chaos".
Now quickly check your pulse...your financial pulse.

Are you stressed out? Worried about your financial safety? Unsure what the current market turmoil means, and more importantly, what it means to your financial future? It's only natural that your financial pulse is a little elevated at the sight of such headlines. But if a racing pulse is keeping you up at night, it may be the symptom of something deeper. Answer this for me: When your financial pulse was racing, did you refer to your financial plan?

Yes.

Great, so did I. While concerned with the situation on a macro scale, I felt at ease with my financial future and that of my clients because we have solid financial plans. If you do have a plan, but still felt ill at ease, perhaps it's a signal that your plan needs updating. Perhaps your situation has changed and your short and long term goals are not being addressed.

No.

I'm going to assume that the reason you didn't refer to your financial plan is simple - you don't have one. After 20 years of financial planning with clients, I can assure you that the single most valuable thing I do is provide my clients with a comprehensive, written financial plan. A good financial plan should be tailored to your short and long term goals, clearly laid out and easy to understand. You should be able to refer to it and feel at ease - even during market turmoil.

How do I get a financial plan?

Your first step is to find a qualified financial advisor who specializes in comprehensive financial planning to work with. Ask your friends or other trusted professionals you work with (eg. your accountant) for a referral. Set up an introduction meeting and get to know the advisors qualifications, services and process before you commit to working with them. Once you find a professional that you are comfortable working with, they will lead you through the process of building a financial plan.

And don't forget your spouse - if you are in a relationship, it is important that you both are involved in creating and implementing your financial goals and objectives to form a plan around and ensure that you both understand all components of it.

Get it in writing.

Numerous studies prove the single most important factor to achieving your goals is to write them down. Your financial goals should be no exception. In addition, having your own copy at your home allows you to refer to it whenever you need to - when you feel your financial pulse racing, pull out your plan. If you don't find what you are looking for, you will be better equipped to have a meaningful conversation with your financial advisor.

Peace of Mind

As is the case with many facets of life, the biggest fear is fear of the unknown. Once you have a plan that you helped build and understand, you will be able to keep your financial pulse in check during times of economic stress. So, what should your financial plan recommend for tumultuous times like we have recently experienced? I don't know. Your financial plan is YOUR financial plan, not mine. I know what mine said to do - and I did it. Keep in mind that sometimes the best plan of action is inaction - although it feels counterintuitive to ‘do nothing', keep in mind that your financial advisor knows that the market has its ups and downs and will have prepared for this. Panic selling will likely contradict this long-term plan and cause more damage than sticking to your plan.

Glenn Ayrton is registered as an Investment Advisor through Sora Group Wealth Advisors Inc., a Member of the Investment Industry Regulatory Organization of Canada and the Canadian Investor Protection Fund (CIPF). This information is general in nature, and is intended for educational purposes only. For specific situations you should consult the appropriate legal, accounting or tax expert. This update is provided as a general source of information and should not be considered personal investment advice or solicitation to buy or sell any securities. The views expressed are those of the author and not necessarily those of Sora Group Wealth Advisors Inc.

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