Skyrocketing crude oil and unstable markets are just a few of the financial outcomes associated with the ongoing war in Ukraine. While we’re all shocked and worried about the humanitarian implications of the war, it’s also normal to wonder how it will impact your finances.
If you’re wondering what to expect and how you can best confront these uncertain times, this post is for you.
It’s natural to wonder what happens during times of instability. History is a great teacher and can tell us some of what we can expect during times of conflict and uncertainty.
Historically, wars and conflicts are associated with market volatility. In most cases, this means that stocks take a dip due to uncertainty and concern about the future. Yet, over time, markets usually recover following conflicts and geopolitical events. Most stocks will return to the level they were at prior to the event. The trick is to not let your nerves get in the way of how you approach your portfolio. Also, it’s important to carefully consider which portfolio items may be worth adjusting, when, and which are best to leave alone.
Ultimately, market volatility is unpredictable. Each person’s financial situation is different and requires a unique, personalized approach. Although it may be good advice for a young person to leave their investments alone for another twenty years, someone who is going to retire in two years may need to take action.
Knowing when to hire a financial planner is kind of like knowing when to go to the doctor. Sometimes, you can get by if you pick up some Pepto Bismol or cough syrup at the pharmacy. Yet, if your symptoms are serious and you have an important meeting coming up, you’ll probably head straight to the doctor’s office. That way, you can get the right medicine right away and give yourself the best chance to get better before your meeting.
Similarly to your health, your finances are a serious matter that can have a huge impact on your quality of life. Leaving your finances to chance and choosing not to consult with a professional financial planner could easily mean your financial troubles grow into a bigger problem. A CFP® Professional can help by quickly addressing the issue, such as a stock portfolio that’s too risky or that isn’t diversified.
A CFP® Professional can also help you in other ways that will assist you through uncertain times. For example, they can assist you to find other investment opportunities that aren’t subject to market volatility such as bonds, among other options. Or, they may help you budget to save more, assist you in building an emergency fund, or help you build your retirement fund.
Remember, hiring a financial planner is an excellent choice if you’re ready to face your finances head-on and find effective solutions that will set you up for success. While it’s possible that you can take some steps in the right direction on your own, working with a professional will be much more efficient and give you the outcomes you need. And most importantly save you something you can no longer create more of…time!
Are you ready to hire a certified financial planner? Get in touch to discuss how we can keep your finances safe even in these uncertain times.