Nobody likes to see their investment portfolio decline in value. It doesn’t matter whether you are in retirement or just getting started with investing. The recent COVID-19 pandemic caught the world off guard, however, unexpected market movements from time to time really should be…expected. We discuss strategies for navigating this COVID-19 market with Aaron Lewis, MD – anesthesiologist by day, finance nerd by night. Scroll down for the audio-only version.
Get a Plan. It is a lot easier to mentally prepare yourself for portfolio declines when you have a plan in place. Preparing in advance for how you may feel (fear, anxiety) and having a strategy for when it happens can help you survive the stormy waters.
Young doctors have the advantage of time. The one thing you cannot get back and cannot create more of is time. Younger doctors have the benefit of time on their side. When stocks decline in value, it creates a great opportunity for long-term investors to purchase shares at a discount and potentially benefit immensely in the future.
It’s normal to feel fear. You wouldn’t be human if you didn’t feel fear. Fear of “losing” money. Fear of not having enough. Fear of dying. We all experience fear. Acknowledge it, accept it, but in times like these, try not to act on it.
Tip of the Day: Focus on what’s important to you. Odds are, we won’t be able to accomplish everything we want in life. If we can achieve six or seven of our goals in life, chalk that up as a success. Really focus on what’s important to you and your financial goals that maximize happiness.
Special thanks to Dr. Aaron Lewis, of MoneyNerdMD.com, for joining us in today’s episode!
For more financial planning tips from Corey and Rachelle find them on LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance
Diversification and asset allocation strategies do not assure profit or protect against loss. Past performance is no guarantee of future results. Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Discussions in this show should not be construed as specific recommendations, legal, or investment advice. Always consult with your investment professional before making important investment decisions. Advisory services through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Securities offered through Cambridge Investment Research, Inc., a registered Broker/Dealer, Member FINRA/SIPC. Finity Group and Cambridge are not affiliated.