The world is facing the Corona Virus pandemic.

Image from www.cnn.com

This disruption has had rippling effects across many nations and economies. No one is unaffected by this – regardless of how much you have in your pantry, how much stock of toilet paper or hand sanitizer you have, or how prepared you are if you get sick – but your investments and dare I say super has already taken a hit.

So what do we do about this? Honestly – not much. My advice is to sit and wait, selling out now will only crystallise the losses. Although the Corona virus is a unique scenario effecting us world wide, the volatility we are seeing in the market has occurred before and history shows things will bounce back – when? That’s the magic question.

Down

Some would also say now is the time to jump in and invest as the stock market has plummeted – and yes this could be good advice – only if you knew when the bottom had been reached… and right now we don’t. If you are looking to invest while values are low, I suggest drip feeding your purchases over several months known as dollar cost averaging which helps neutralise the volatility over time.

Here are my tips to get you through the financial upheaval caused by the Corona virus:

  1. Ensure you have a savings cushion – a minimum of 4 weeks income, however more would be preferable.
  2. Get on top of your finances – know what your expenses are – ensure you are paying your bills as you get paid / seek financial advice if you haven’t already
  3. Make sure your personal insurances are up to date – if you don’t have income protection and life insurance get onto it and get advice
  4. Don’t panic about your super balance – we expect the market will bounce back eventually

It’s times like these where we cannot get complacent – and if you have been perhaps now is the perfect time to get on top of your finances.

If you want more information about insurance, cash flow management and savings strategies or investment strategies then drop me a line as I am here to help.

Amie Baker

Amie is a passionate financial adviser who also is a hard working mum of her 3 boys. With a dedication to helping people in her community and also hosting and running regular charity and fundraiser events, she is a busy professional just like you. Her focus is to help her clients by showing them simple ways they can achieve their financial goals. Amie's success is in the success of her clients.

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