2020 has been a year full of unexpected events (from COVID-19 to wildfires to international trade tensions to coin and toilet paper shortages) that have left many questioning what the future may hold. While unfortunately there’s no crystal ball to see the future, there are some things that you can do to prepare yourself for the unknown.
- Maintain adequate cash reserves. Then you can access your money for any emergencies that arise. Plan to have 6 months of your expenses in liquid assets in a money market or savings account.
- Have a cash stash available. Keep approximately 1 month’s worth of expenses in physical cash at your home in a fireproof safe or other diversion safe in case you are unable to get money out of your bank.
- Diversification. Ensure your assets are properly diversified across asset classes depending on your tolerance for risk. This helps to minimize volatility and certain risks.
- Re-balance Your Accounts. With the large swings in the markets, your investment allocations may be skewed. It’s important to re-balance to ensure that your accounts remain invested according to your risk tolerance and that you don’t take on unnecessary risk. At ElderAdo, we have been re-balancing your accounts throughout these unprecedented times.
- Adjust Investments. Depending on the outcome of the election in November, it may be beneficial to adjust the investments in your portfolio to certain sectors that are likely to benefit depending on the elected party. At ElderAdo, we have been preparing to adjust portfolios depending on the election outcomes. If you are still uneasy about your financial future and would like to talk to one of our advisors, please feel free to reach out to us.