That is the cry of many investors to their advisors at times like these. No, I am not talking about just the Coronavirus times but anytime the market takes a severe and quick drop. Certainly, the S&P 500 down more than 25% within a month is disturbing to us all, and we worry for our family’s future.
FUTURE–remember that is what you are worried about. Making short-term panicked decisions will have a lasting impact on that future. At times like these, good advisors are coaching clients to be smart and patient. Think long term gains, not short-term pain from temporary losses. Remember the only sure way to make short-term losses permanent losses is to sell. More money has been lost trying to time corrections and their turnarounds. The long-term results of being in equities come at a price, and that price is the unease at times like these.
I ask everyone to think out one year from now; two years from now; and then beyond. If history is any guide, this crisis will all be behind us, and we may regret the decisions made today. If you do want to make a change, let the markets recover. Whether that is in 3 months, 6 months or a year. At that time, we can revisit your financial plan and adjust it for any Investment Plan changes you intend to make.
Here’s a great piece from T. Rowe Price I believe everyone should read. I will continue to send out pieces I find helpful over the coming days, weeks and months as needed.
Thank you for your trust,
M. Shane Gaddy, CFP®, C(k)P®
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