Here are five areas of finance that may be viewed through a different lens in the aftermath of Covid-19.
By Kathy Longo, CFP®, CAP®, CDFA
Monday, 11 May 2020
In just two short months the world that we all knew has changed. It is likely to stay changed in many ways for many years to come. As with anything that has a dramatic impact, we try to look at ways we may grow or learn from the upset. When it comes to personal finances, investing, retirement, and our overall attitudes toward money, I wonder what impact this pandemic will have on couples, families, and individuals.
Whether you have a lot or a little, no one was left untouched by this virus and the economic toll that it has taken. This time in our history will leave an indelible mark on our emotions and the way we think about and interact with money. If you’ve just retired, you may have seen a significant drop in your retirement investments that you are counting on to last you several decades. If you’ve just graduated from college and you were on the hunt for your first career job, you may instead find yourself back at home with mom and dad. If you’re an actor or musician your prospects for the moment are nil. If you are fortunate to have a job that is stable and you are working from home you may be fully aware that the raise you were about to ask for is not likely going to happen this year.
So, what does this mean for the role of personal finance in our lives? For each of us, it may be a bit different, but I have identified five areas of finance that may be viewed through a different lens in the aftermath of Covid-19.
Don't Make Investment Decisions Based on Fear
By Kathy Longo, CFP®, CAP®, CDFA
Thursday, 16 April 2020
One thing we all know for certain is that we are living in uncertain times.
The COVID-19 pandemic has turned our world upside down and we are each feeling it in very personal ways. One shared concern among many people, however, is the financial impact this public health crisis will leave in its wake. Despite the emotional tornado we’re all living through it’s important to remember that managing our emotional reactions is one of the best ways we can contend with times of uncertainty so that we can come out the other side having made smart decisions based on more than our fears.
For many people, fear is magnified at the moment, especially where investments are concerned. We’re living in a scary time. However, we believe turbulent times call for a calm and cool approach to personal finance, reminding ourselves of the lessons learned from prior crises, and getting back to basics. Although there is much we cannot control right now, it’s a great time to refocus on the things you can.
So, if you’re feeling unsettled about money matters at the moment, channel more energy into these five areas of your personal finances:
Here’s How to Ensure You’re Focusing on the Right Things
By Kathy Longo, CFP®, CAP®, CDFA
Monday, 10 February 2020
It has been estimated that 11 million bits of data travel across our brains every single second, yet we only process about 50 bits per second. You don’t have to be an expert in Information Theory to understand that this means two things: we simply can’t focus on everything and what we do focus on matters. An excellent example is what we choose to emphasize in our financial lives, yet many people have allowed their ‘financial pyramids’ to be turned upside down.
Tips for Transitioning Out of a High-Powered Leadership Role and Into the Next Phase
By Kathy Longo, CFP®, CAP®, CDFA
Wednesday, 29 January 2020
Retirement can be a difficult transition for anyone, but it can pose an even greater challenge for those leaving high-powered leadership roles. Since their positions are so incredibly demanding, CEOs often don’t have the time or focus to plan their next move. Also, since the average age of retirement for a CEO is just 62, that leaves quite a few years to plan for. CEOs also frequently define themselves by their work, which can make retirement feel like a loss rather than a milestone to celebrate.
Planning Together Ensures You’ll Understand One Another’s Expectations
By Kathy Longo, CFP®, CAP®, CDFA
Wednesday, 15 January 2020
Nearing retirement is an exciting time. It’s a culmination of your many years of hard work and smart financial decision-making, and many people find it to be an incredibly meaningful and rewarding phase of life. You likely have a host of retirement dreams – everything from where you’ll live to how you’ll spend your days and with whom – but do you know if your spouse has different expectations?
