Top 3 Tips for Wealth Management Planning in an Uncertain Global EconomyJake Steele, Wealth Advisor
At Precision Wealth Management we are strong believers that ‘living wealthy’ is a process. Rather than being about a short-term goal, it’s the result of years of smart, strategic wealth management planning, with financial partners you trust. It can be hard to know when to stay the course, and when to alter your wealth management planning strategies. This is even more the case when worldwide economies are in a time of higher-than-average flux.
Market volatility can be a stressful and difficult obstacle for even the most seasoned investor. Below are three principals for wealth management planning in an uncertain economy:
1. Stay Calm and Invest On
Maintaining your perspective can be one of the most challenging aspects of successful wealth management planning. After all, who wouldn’t feel panicked if they woke up to find their portfolio value had dropped by 25%? That’s why it’s important not to make any knee-jerk decisions you’ll later regret. Temporary losses can be the scariest part of wealth management planning – but “temporary” is usually the key word.
Keep in mind that the stock market has fallen 14% on average from high to low each year, but still managed gains of 80% in a given calendar year. We recommend you consult with your advisor at Precision Wealth Management on the best strategy for your wealth management planning. Keep in mind that most market changes will not require a drastic shift if you have a solid portfolio. And keeping calm is easier if you’ve working with a professional wealth advisor at our firm.
2. Invest Consistently – Regardless of the Market
Consistent investing is one of the keys to long-term success in wealth management planning. If you’re like many people, however, uncertain or bad market conditions make you want to slow or stop new investments altogether. That’s why a consistent investment plan should be part of all wealth management planning. Set an amount to invest each month or every paycheque, and keep investing regardless of market outlooks. Sometimes, the best and most lucrative time to purchase a stock is during a dip in the market, when your potential returns are greatest. And this will happen if you’re regularly contributing to your portfolio.
3. Find an Investment Professional You Love and Trust
When it comes to wealth management planning, the stakes are too high to go it alone, and it’s best to partner with an investment professional like Precision Wealth Management. They can help you feel confident that your money is in good hands—regardless of market conditions.
Wealth management planning is the key to living wealthy today, tomorrow and in the years (and decades) to come. It is far too important to stay with an investment professional you’re unsure of. Find someone who is proven in their field, who can customize to your needs, and has solid results. Like any relationship, you want to find someone who listens and understands you – your family, your goals and your overall financial situation.
Investing in times of uncertainty can be frustrating and challenging, as the volatility of the stock market can result in immediate (if temporary) changes to the value of your mutual fund portfolio. Fortunately, when you look at long-term versus short-term results, keep investments consistent, and work with a professional advisor, you can get started on a wealth management planning strategy that help you and your family live wealthy.