WiserAdvisor – Blog

Main Menu

  • Home
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Estate Planning
  • More
    • Personal Finance
    • Portfolio Management
    • Financial Trends/Government

logo

Header Banner

WiserAdvisor – Blog

  • Home
  • Financial Advisor Guide
  • Financial Planning
  • Retirement Planning
  • Education Planning
  • Estate Planning
  • More
    • Personal Finance
    • Portfolio Management
    • Financial Trends/Government
Financial Planning
Home›Financial Planning›Revisiting Your Financial Plan Amid The Global Pandemic? Here’s All You Need to Know

Revisiting Your Financial Plan Amid The Global Pandemic? Here’s All You Need to Know

By WiserAdvisor Insights
April 27, 2020
2192
0
Share:
Revisiting Your Financial Plan Amid the Global Pandemic

Last Modified on May 22, 2020

COVID-19 has had a massive impact on the lives of many people. The virus has disrupted every country in the world and crashed markets around the globe. As the economies go down and a bear market appears, investors have been stressfully watching the changes from the edge of their seats. But the important thing to remember here is that every downturn in the market is followed by a recovery.

While you wait for the market to recover, here are some investment instruments that can help protect your financial plan from losses. 

An emergency fund

With a crisis knocking at your doorstep, the most essential financial instrument that you must include in your financial plans is an emergency fund. Many factories have been shut down and small businesses are suffering the most with a drop in sales. Employees are being laid off from organizations, and salaries are being delayed. While income sources seem to be in jeopardy, the expenses remain more or less the same. Food, personal care products, rent, electricity bills, mortgage payments, etc. are not going anywhere, even in a pandemic. This is why it is important now more than ever to have an emergency fund in place that can help you cover the costs of essentials. 

A retirement plan 

One of the biggest mistakes that investors are making in the current times is prioritizing the present over the future. Times ahead may seem bleak, but there will be a day when all of this will be over. While maintaining sufficient funds is evidently crucial right now, you should not let it tamper with your long term goals like retirement. Cutting back on your contributions to retirement accounts like the 401 (k) or an individual retirement account (IRA) can set you back by many years. Try to save for the present by cutting other avoidable expenses like overstocking essentials and panic buying. You should try to not meddle with your retirement savings, unless absolutely necessary. 

An estate plan

Coronavirus has affected many lives which can make you question the chances of your own mortality. Constant fear and panic can make things seem mortifying and frightening. However, there is no harm in being prepared. This is a very crucial time for people to revisit or draft their estate plans. With everything in a frenzy, having a carefully drafted living and last will, advance directives, medical and financial power of attorneys, trustees, executors, and successor trustees and executors are essential. This is the least you can do to protect the interests of your family. 

A healthcare plan 

Needless to say, health care costs should be a priority for everyone right now. Make sure that you have a health insurance policy in place for every member of the family. If you have recently lost your job and were dependent on your employer-funded healthcare plan, you should get a private insurance plan as soon as you can. The same goes for young parents who may not have had the time to insure their children yet in the middle of this chaos. Just a couple of days of hospitalization and tests can cause a severe dent in your savings. It is vital to be financially equipped with a medical plan that can cover such costs. 

A well diversified portfolio

The bear market has caused a lot of stress and panic around the country. But instead of second guessing your chances of profit, now is the time to diversify your portfolio. If you invest in stocks from different countries, industries, and sectors, your chances of risk substantially decrease. For example, while the stock prices of airlines are likely to fall and experience losses, commodities like hygiene products, food, etc., have seen a hike in demand. A well diversified portfolio can help you balance the red marks on your portfolio. 

Income tax returns

With the lockdown in place, the Internal Revenue Services (IRS) has pushed the deadline for filing taxes to July 15, 2020. However, delaying to file your taxes may not be the best thing to do right now, especially if you are expecting a return. If your Adjusted Gross Income or AGI for 2019 is less than your AGI in 2018, you could also qualify for a full stimulus payment. Try to maximize every opportunity that you have to earn some money and build your liquid reserve. 

Other sources of income

As stated above, the fear of unemployment is at its highest today. You or your spouse can lose their job anytime. This can come in the way of your daily expenses, lifestyle, and other short term and long term goals. It can also be problematic if you have debts like education or car loans to pay off. Finding other sources of income, despite having a contingency fund, is a good way to ensure financial stability. If you own a home, you can consider applying for a home equity line of credit. There is no immediate interest accrued on the money you borrow on home equity, and you can solve your pressing financial concerns. 

To sum it up

With all the time in the world at your disposal, try to revisit your financial plan and make sure it is strong enough to survive a global pandemic. These basic yet vital instruments can keep you afloat in a crisis and also ensure a financially secure future for you and your loved ones.  

If you need help in financial planning for COVID-19, you should consider consulting professional financial advisors for more guidance. 

TagsCovid 19 PandemicCovid-19Financepersonal finance
Previous Article

COVID-19 Pandemic: Why It Is the Best ...

Next Article

Know How You Can Use Municipal Bonds ...

0
Shares
  • 0
  • +
  • 0
  • 0
  • 0
  • 0
WiserAdvisor Insights

WiserAdvisor Insights

A team of dedicated writers, editors and finance specialists sharing their insights, expertise and industry knowledge to help individuals live their best financial life and reach their personal financial goals. We believe that there is no place for fear in anyone's financial future and that each individual should have easy access to credible financial advice.

Related articles More from author

  • Market-Timings-of-Investment
    Portfolio Management

    5 Reasons Why Market Timing is Controversial

    February 11, 2020
    By WiserAdvisor Insights
  • Coronavirus-Outbreak
    Financial Planning

    6 Lessons from the Market’s Reaction to the Coronavirus Outbreak

    April 16, 2020
    By WiserAdvisor Insights
  • Investment-Strategy
    Portfolio Management

    Different Asset Classes and How to Incorporate them in your Investment Strategy

    February 21, 2020
    By WiserAdvisor Insights
  • Safety-First-Retirement
    Retirement Planning

    The Concept of Safety-First Retirement Planning

    December 27, 2019
    By WiserAdvisor Insights
  • Learn From COVID-19 to Improve Your Retirement Plan
    Retirement Planning

    4 Things You Can Learn from COVID-19 to Improve Your Retirement Plan

    June 15, 2020
    By WiserAdvisor Insights
  • Financial-Literacy
    Personal Finance

    Tips to Improve Your Financial Literacy

    January 5, 2020
    By WiserAdvisor Insights

You might be interested

  • 529 Plan College Saving Plan
    Education Planning

    529 Plan: Everything you need to know while saving for college

  • Financial Goals
    Financial Planning

    7 Ways to Stay Frugal to Achieve Your Financial Goals

  • Personal--Finance
    Financial Planning

    Important Aspects of Personal Finance in A Changing Economy

  • Popular Posts

  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • financial planning DIY-Checklist

    How to Prepare an Annual Financial Plan – Financial Planning DIY Checklist

    By WiserAdvisor Insights
    June 10, 2019
  • IRAs-Work-401

    How IRAs work? 401k vs IRA

    By WiserAdvisor Insights
    July 4, 2019
  • Retirement-Planning

    Retirement Planning checklist

    By WiserAdvisor Insights
    July 8, 2019
  • Financial-Advisor

    Why and When do you need a Financial Advisor?

    By WiserAdvisor Insights
    July 8, 2019
  • Financial-Professional

    How to prepare for a meeting with your Financial Advisor

    By WiserAdvisor Insights
    July 8, 2019
  • monitor your financial advisor

    How to monitor the activities of your Financial Advisor?

    By WiserAdvisor Insights
    July 16, 2019

Don't miss out! Get our Helpful Financial Tips Newsletter

Categories

  • Business Finance (2)
  • Education Planning (22)
  • Estate Planning (16)
  • Financial Advisor Guide (14)
  • Financial Planning (91)
  • Financial Trends/Government (2)
  • Personal Finance (8)
  • Portfolio Management (35)
  • Retirement Healthcare (1)
  • Retirement Planning (65)

WiserAdvisor is America’s oldest and largest independent network of screened financial advisors. We make it easy and convenient for consumers to find and connect with advisors in their area. We have successfully helped over 100,000+ individuals find their best financial advisor since 1998 with no match fees, no commitments, no obligation, and complete confidentiality. WiserAdvisor has been featured in The Washington Post, The Washington Journal, ABC, CBS, Yahoo and has been seen in numerous other leading financial news and information websites.

Follow Us

  • Recent

  • Popular

  • Covid-19-Vaccine

    8 Important Facts A Retiree Should Know About the Covid-19 Vaccine

    By WiserAdvisor Insights
    January 15, 2021
  • Financial-Goals

    How a Financial Advisor Can Help You Define Your Financial Goals

    By William Hayslett
    January 14, 2021
  • Kid's Education

    The Best Approach to Plan for Your Child’s College Education

    By WiserAdvisor Insights
    January 11, 2021
  • The benefits of working with a financial advisor - WA

    The benefits of working with a Financial Advisor

    By WiserAdvisor Insights
    July 16, 2019
  • retirement-accounts

    Choosing the Best Retirement Accounts

    By WiserAdvisor Insights
    July 8, 2019
  • financial planning DIY-Checklist

    How to Prepare an Annual Financial Plan – Financial Planning DIY Checklist

    By WiserAdvisor Insights
    June 10, 2019

Contact Us

Corporate Headquarters

12150 Monument Drive, Suite 400
Fairfax, VA, 22033

Business Hours

8:30 AM – 5:00 PM EST (Monday – Friday)

Email Address

wa.assistance@wiseradvisor.com

Phone Number

(703) 651-2060

Fax Number

(703) 259-4487

  • Privacy Policy
  • Terms & Conditions
© Copyright 2019 WiserAdvisor.com. All Rights Reserved.

Add WiserAdvisor - Blog to your Homescreen!

Add