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Audio Version
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During these stressful financial times, it’s important to remain rational. We draw on some important points from Allan Gray that can help you stay on track and not let market noise affect your financial goals:
Recognise your emotions
Often we make the same mistakes with Investments: We buy high out of greed and sell low out of fear. Take stock of how you feel and think through things, or ask a trusted professional, which will help you not act on your emotions and avoid a likely irrational decision.
Avoid over-checking your investments
Technology has given us unlimited access to information and our investments, which can lead to one checking on investments too often and creating unnecessary stress.
Avoid panic selling
As fear rises with uncertainty surrounding the COVID-19 pandemic, one may feel panicked and want to withdraw hard-earned investments. However, it’s important to remain disciplined and committed to your investment goals, which in the long-term, should save you from costly mistakes.
Review your financial goals
Your investment choices and strategy depend on your goals and circumstances. With unexpected events, it is a good time to review your financial goals to ensure that they are aligned with your investment strategy.
Speak to a professional
A good, independent financial advisor can assist you in creating financial discipline and help you navigate these uncertain times through preparing a plan that addresses your immediate challenges and your long-term goals.
At Investonline we recommend that you regularly review your financial position through a comprehensive analysis and financial plan. There are so many important aspects to managing your finances: having the right tax structure, estate plan, risk profile, investment strategy, enough liquidity, best administrator, personalised service, and ongoing expert advice. This should all be combined into a personalised financial plan that we will do for you at Investonline. Click here to see an example of our financial planning process.
