The impact of the corona virus will be felt for quite some time.  Markets decline on average 35% every 6 years and a bear market last for 10 months.  Also over the last 20 years the markets best days are during this time when everything looks bad.  The market begins its rebound before the economy or any other positive signs.


What can you do right now?

  1. If you don’t need the money you have invested right now, keep it invested.  Hold out as long as possible
  2. Focus on your personal goals and the long term.  Not the short term swings and the news.
  3. Consider refinancing – Interest rates are dropping, if you have rates above 4% you should at least get a new quote.
  4. Keep investing and invest more.  If you have a monthly saving/investing plan keep doing it.  Now is a great time to invest while the market is down.  If you have money you do not need right now consider investing
  5. Re-balance your current investments.  Buy low.  How you are currently invested has now taken a dramatic hit and is not in balance with your risk preference.  Also consider if you are looking at this as an opportunity to invest more aggressively now.
  6. Roth Conversions – While your IRA accounts are now down, you can convert them to Roth IRA and pay less in taxes because the value is lower.  This will move forever taxable money to forever non taxable money.
  7. Consider your protection – Life insurance applications are up 50% the last 2 weeks.  People are thinking about what is important to them right now.  Life insurance companies have actually made it easier to get coverage right now.  I can complete the process without you having to see anyone and all online.
  8. Be Grateful – be grateful for what you have.  Fulfillment in life does not usually come from wealth.  What’s really important in life to you?  What makes you happy?
  9. Last but not least Re Evaluate your targets, your goals, your financial plan.  If it is not working or providing you some peace of mind during this time, now is the time to fix it.  Stress test your plan.