Financial advisors can help reduce anxiety
By Derrick Martinez
The long-running coronavirus pandemic has fueled many fears, including financial ones. But some people worry far less than others.
Consider this: According to a survey by Age Wave and Edward Jones, 84% of investors said working with a financial advisor gives them a greater sense of security about their finances during the pandemic.
Of course, even without a global health crisis, many people experience investment-related fears, and given the periodic volatility of financial markets, that’s probably not surprising. But even in relatively normal times, a financial orientation can prove useful.
A finance professional can help you…
… Look beyond the headlines — inflation, interest rates, pandemics, elections — there’s always something in the news that could affect the investing world in the near term. But by helping you build a portfolio that’s long-term and reflects your goals, risk tolerance, and time horizon, a financial advisor can enable you to see beyond the headlines.
… Avoid Making Emotional Decisions – Many people let their emotions guide their investment decisions. When the market goes into a downturn and the value of their investments falls, they sell to “cut losses” even though the same investments may still have good business fundamentals and promising prospects for the future. Conversely, when the market is trending up, some people will chase “hot” investments, even if they’re overpriced and may have very little room to grow. But a financial advisor can help you prevent these fear- and greed-based actions by only recommending steps that make sense for your situation.
… Work towards multiple goals – At different times in your life you may have financial goals at the same time. For example, you could invest for retirement decades away while trying to save for a child’s college education. A financial professional can suggest ways you can continue working towards both goals in terms of how much money you can afford to invest and what types of savings and investment vehicles you should consider.
… Prepare for the unexpected – Most of us didn’t need a pandemic to remind us that unexpected events can happen in our lives – and some of those events can have serious financial implications for us and our loved ones. Do you have adequate life insurance? What about disability insurance? And if you ever needed some kind of long-term care, such as B. a longer stay in a nursing home, how would you pay for it? A financial advisor can assess your protection needs and recommend appropriate solutions that fit into your overall financial strategy.
… Adapting to Changing Circumstances – Over time, many things in your life can change – your job, your family situation, your retirement plans, and so on. A financial professional can help you adapt your financial strategy to these changes.
Reaching your financial goals can be challenging, but it doesn’t have to be years of worry and worry—as long as you get the help you need. This article was written by Edward Jones for use by your local Edward Jones financial advisor. Edward Jones, Member SIPC