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Guiding Your Assets Through Challenging Times

By September 29, 2023October 4th, 2023Finance & Wealth Management2 min read

Maintaining a composed approach to your financial assets is essential in times of unprecedented challenges, such as the ones presented by global crises.

Stay Calm! It’s crucial to recognize and understand your emotions during tumultuous times. Rather than making impulsive decisions, reflect on your personal risk tolerance. Collaborate with your wealth manager to ensure your investments remain balanced and aligned with your long-term goals.

Stay Invested! Consider this: compound interest has often been termed the 8th wonder of the world. Over a period from 1998 to 2018, consistent investment would have yielded an average annual return of about 8%. However, missing just the ten best days in the market would drop that return to 4%. If you missed the 20 best days during the same period, your returns would plummet to less than 0%. Hence, the significance of staying the course.

Stay Liquid! Liquidity is a safety net during uncertain times. Holding at least a year’s worth of capital is advisable for businesses. Maintaining one to two years’ worth of cash is prudent on a personal front. While real estate might seem appealing, it’s crucial to remember that it can pose cash flow challenges and may only sometimes be easy to liquidate. Similarly, while bonds offer some security, they should be cautiously approached, especially during bear markets, which historically last about 18 months.

Lastly, always be proactive about understanding your investments. Ensure you’re aware of any fees your financial consultant charges. Be inquisitive, ask relevant questions, and be in the driver’s seat regarding decisions about your money.

Take Control of Your Financial Future Today!

In unpredictable times, your financial well-being becomes even more crucial. Equip yourself with the knowledge and strategies to navigate these challenging waters. Whether you seek advice on maintaining liquidity, understanding market trends, or forging a solid partnership with a wealth manager, we guide you. Don’t leave your financial stability to chance.

Connect with our expert team now and secure your assets for the future.