The coronavirus pandemic has wreaked havoc on nearly every facet of everyday life. For many, trying to secure your financial investments during such volatile times has been difficult. Many have seen their retirement accounts drop by 30% or even 40% in a matter of weeks. Mike Reeves, financial planning advisor of Strategic Wealth Designers joined the newscast to help sort out financial strategy for investors unsure of what to do with their finances. Reeves says it isn’t as simple as just hoping the market comes back. “Whether you have a financial advisor or manage your own investments now is not the time to just hope things turn around, being proactive with where you are positioning your investable assets can make all the difference for you coming through the financial storm wrecked or just minorly affected.”
He says it’s very important to make sure you have safety nets in place in your portfolio. If you are near or in retirement you can’t afford a big loss because it could lead to you having to work an additional 1 to 3 years depending on how big of a loss you incur. Conversely if you are young and have lots of years ahead in the workforce, Reeves suggests buying in while the market is low if you have the ability. “You must secure your financial house first, make sure that’s in order and if it is and you are comfortable, now could be a great time for you to buy some stocks that have lost a significant amount of value in a very short time. Now everyone will be able to, but there are some great investments to buy at a low point right now.”
Lost in the stimulus package discussion is taxes. Tax planning should be at the forefront for those with retirement accounts because with the trillions of dollars having to be used to keep the economy afloat, eventually Uncle Sam is going to need to recoup that investment. Reeves says taxes are likely sitting at the lowest rates we will see for a long time and some have a great opportunity right now to take advantage of that. “If you can convert some of your investment portfolio why taxes are at the lower rates you should consider taking advantage of that. It could be the difference in 10’s of thousands of dollars for yourself or that money going to the government,” Reeves said.