My biggest piece of advice to investors worried about all of the financial uncertainty sparked by the COVID-19 virus, regardless of age, is to look beyond today before making any investment decisions. The coronavirus is a rapidly developing story and so, too, are the responses from local and global governments. It is understandable to be concerned, especially for retirees who rely on their investments to pay the bills, but it is never helpful to act out of fear.
Keep in mind that governments are instituting significant stimulus packages to restart businesses that are currently on pause to help slow the spread of COVID-19. Canada has earmarked billions of dollars to help the country get through this and the U.S. has signed off on its biggest stimulus package to date. This is good news.
Many retired older investors are concerned about their short time horizon to recoup losses. The most important question seniors have to answer is: Do you require all of your funds in the next four to six weeks? If the answer is no, continue to go about your business and live life.
Make sure your portfolio is properly balanced. At this stage, you should have an asset mix that reflects your risk tolerance and stage in life. The reality is if you are retired, your money should not be all invested in the market, anyway. You should have money in bonds, dividend-paying preferred shares, trusts and equities. Stay in good quality investments that will see you through these difficult times. The market will return.
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My approach to investing is straightforward. I study the markets, global economies and what’s happening within industries to be in a position to best help my clients find good quality investments that will help them meet their goals. I build custom portfolios for each client. I welcome you to call me at 416-332-3863 or email me at email@example.com.