I am fielding many phone calls and emails from clients and am finding that many of you are in a state of paralysis – which is completely understandable. Here are a few tips on money management advice to guide you during these troubled times. It does take some personal finance planning but the few extra minutes is worth sleeping better at night!
1. Start by pinpointing your time frame for your money. If it is truly 3-5 years or less, let’s discuss exit strategies to get out of this market and manage your money in the short-term.
2. If you are able to weather this storm, due to a longer time frame, we can revamp your portfolio by looking at mutual funds that are outperforming their peers, even in this market.
3. Aggressively look at the money management fees you are paying because when you are losing 20% or more, paying an additional 2% ot 6% is not a good idea.
4. We feel that we are in the middle of this market downturn and there is more to come. But this can also be viewed as an opportunity to buy into the market, again if you have time on your side.
5. For a few older clients that are nearer retirements, take a few action steps right away. Even if you had losses, chances are you will immediately feel better just taking the action steps and not feeling like you aren’t doing anything.
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