Planning is Paramount

I know right now it seems like the world is stuck in place; some sort of suspended animation.  I know the feeling and, trust me, I feel it too.  But the good news is, we will get through this pandemic.  Eventually, like most things, this too shall pass.  There are plenty of ways for you to be proactive during this time with your finances.  This current conditions should encourage you to revisit your plan. 

Even if you have a solid plan, expect to see some declines in your personal net worth during this time. Don't be alarmed though...it's just a paper loss for now.  If you can hold out, don't sell positions that are down out of fear and "lock in your losses".  Again, before you make investment decisions, it is always best to consult a professional.

If you are close to retirement, conduct a retirement income check.  Make sure your withdrawal plans haven't changed since the downturn.  Revisit your retirement budget and spending habits BEFORE you retire.  I often times suggest "practicing" your retirement before you make the final leap.

This is also a perfect time to revisit your estate planning.  If you haven't created a trust or medical directives, take this slow time to get things in place.  Pull out your will, trust, power of attorney, health care directives and review you beneficiary designations to see if there are any needed changes. Keep in mind that health care directives are needed for young adults as well.

This is also a good opportunity to revisit your life and disability insurance policies to determine whether these policies still meet your needs; if not, look at opportunities. Many of us have neglected this part of our financial health for years. The federal government gives a pretty good deal with FEGLI but often times it is possible to get cheaper insurance somewhere else.  This is especially true if you need higher levels of insurance than what are offered through FEGLI.

To all of the mothers out there...I hope you had a wonderful Mother's Day.  Thanks for doing the most important job in the world.