Why financial planning is just as important during Covid-19
You’d be forgiven for thinking financial planning is pointless during the economic downturn caused by the Covid-19 pandemic. We’re constantly hearing of companies closing their doors, redundancies being made, and other negative economic stories that are a result of the current crisis.
However, an unstable economy provides a greater reason to have a solid financial plan. There will undoubtedly be a recession off the back of this pandemic, but as with the 2008 global financial crisis, the world will keep turning and markets and national economies will claw their way back out of recession.
Communication is key
Whether you need to review your existing arrangements due to Covid-19, or you’re looking to create a new financial plan to ensure you’re less susceptible to any future fluctuations, being aware of what’s happening is crucial. Good communication is key to having up to date accurate information.
At Mason Wealth Management we’re happy to talk to existing customers and non-customers alike that may need some professional advice and guidance or financial help during Covid-19.
It can be easy to get caught up in hype in the media or on social media and start feeling anxious. Speaking to an expert can help you to concentrate on just the facts and provide you with a clear pathway that becomes your point of focus.
The reasons you need financial planning help are still there, just more urgent
Some people only seek the help of a financial planner for the big decisions in their lives. Things like retirement planning, investing for your children, estate planning, and just generally making the money you have go as far as possible, both now and in the future. The need for these services hasn’t gone away. While many people are in greater need of financial help because of Covid-19, some will be put off because they won’t want to incur extra costs at a time of uncertainty.
Reputable financial planners, such as those listed on the Financial Planning Standards Board Ireland Ltd, will be upfront and completely transparent about any charges, and how they receive them. You can also call for an informal chat to see if the services they offer are suitable for your current situation.
What’s different about financial planning during Covid-19?
Good advice for you might not be good advice for someone else. Similarly, the best approach for you is dependent on your own circumstances and the environment we’re operating in. If either of these change any substantial amount, then there’s a good chance your approach needs to be changed to account for that.
Increase flexibility with a range of scenarios
When markets are unsettled it’s important to position yourself in a way that means you can act when needed. To achieve this, we look at several different options for you, trying to build in as much natural flexibility as possible. Having a plan for a range of scenarios helps your financial planning to be resilient. This is amplified the closer you are to retirement, as the state pension is barely enough for most people.
A comprehensive view of your starting position
While a clear image of your financial position is always crucial, during a recession there is an increased likelihood of change. Jobs that are once secure can become uncertain. Businesses that were thriving can drop off to some extent. We can try to factor in as much uncertainty as possible to ensure you don’t end up overstretching yourself if there is a period of reduced income.
Decide on the best route
While considering different scenarios is good, when you start taking action it’s important to have a single clear path to follow. This provides you with certainty about what’s happening and gives you peace of mind.
Regular reviews to keep things on track
Once a course to achieving your financial goals has been plotted, it’s important to regularly review your position to ensure the expected progress towards your financial goals is being made. While uncertain markets and economies always brings a level of fluctuation, closely monitoring them can help you to act when required.
How have your habits changed?
Your financial planning after Covid-19 may look different to how it would have before Covid-19. This isn’t just because of changes to investments or the likelihood of a recession, but also because many of us have changed our habits during lockdown. Large percentages of the population have been working from home. Are you one of them? Will you continue to work from home more frequently after the lockdown? How has the lockdown affected your spending habits?
These are just a few of the questions we should ask ourselves when formulating a way to move forward. Whether working from home more frequently saves you money, or the impact on your income is far greater and you need a short-term plan to help you recover before concentrating on your bigger financial objectives, we can help.
While some people are saving money on their daily commute, they are also having to contend with a higher weekly shopping bill and more mail order items being purchased. The outcome will be different for everyone, depending on their particular set of circumstances, but should definitely not be overlooked when planning for your financial future post Covid-19.
Choose a financial partner with your best interests at heart
Mason Wealth Management is built on the relationships we develop with our clients. Our success has always been dependent on the success of our clients. Our practice is small enough to offer a personal service, providing friendly real-world advice in a down-to-earth way.
Phil, Les, and Martina have always strived to provide the best possible ongoing support, ensuring your financial planning is meeting your changing requirements. While regular reviews and tailored solutions have always been part of our practice, the need for it is greater than ever.
If you need financial help during Covid-19 contact us for more information on how we can help you achieve your financial goals.