Interview Kathleen E. Owings.
Financial Advisor, Kathleen Owings, is a Principal and Financial Advisor for Westbilt Financial Group.
Some Key Talking Points From Kathleen Owings
on Financial Fears Surrounding the Pandemic:
People are closely watching the stock market’s reaction to every twist and turn in the story of our current pandemic crisis. Should people be overly concerned? What should we do? How can we protect our investments?
People should really try to not freak out even when we see big dips in the market, but there are a few things you can still do. First, as with anything concerning the market, there is always volatility. Yes, we should watch what is happening, but it should NOT drive your financial decisions.
Understand why you are reacting the way you are, and also understand the purpose of your money. Most people do not need their money immediately, so they have time on their side to withstand the volatility. Is it just emotional?
However, no one likes to see their account balances go down. So I recommend that people understand when they need their money for retirement or other financial objectives, and then also have their accounts properly diversified to endure the volatility. If their money is needed in a very short period of time, such as less than one year, then they may not want to be in the market (as we know that short term volatility can be a bit of a roller coaster).
As a financial advisor, my phone starts to ring with client questions during times like this. A good financial advisor should have you positioned so that you can weather the volatility and not make an emotional decision based on short-term volatility. Financial advisors pay attention in a different way . . . they are looking for the opportunities to get in and take advantage of the volatility for some clients.
Even though we are currently experiencing some major market volatility, here’s some helpful, solid advice when it comes to long-term investments like your 401k:
- Investors should remain calm and not make any rash decisions about their investments in the midst of these market movements.
- Market corrections and volatility are very normal for the stock market. This one may feel different as we are coming out of 2019 which had less volatility and finished up 29%.
- It is always wise to review your risk tolerance and be sure your investments coincide with it.
- Ultimately, we know that the market moves in cycles and this will be another cycle for us to note.
- As far as protecting your investments, investors should review their investments but take a long view on the returns.
- Most people do not need their retirement money tomorrow, so overreacting to something happening today, that might impact their future decades down the road, is not advised.
- It is best to make decisions that are measured and financially-based not based on emotions.
It is completely normal to feel nervous and less than secure sometimes when it comes to our investments—especially when the country (even the world) seems to operating on shaky grounds. If you do NOT have a financial advisor, you should consider getting one. They are helpful for people to call during volatile times to gain perspective on the market . . . and to help you be positioned properly throughout the year based on your personal goals.
Post Script: 401K Investments
The first tip I give to clients is to calm down and not make any rash decisions about their investments in the midst of these market movements. Market corrections and volatility are very normal for the stock market. This one may feel different as we are coming out of 2019 which had less volatility and finished up 29%. It is always wise to review your risk tolerance and be sure your investments coincide with it. Ultimately, we know that the market moves in cycles and this will be another cycle for us to note. As far as protecting your investments, I suggest that investors review their investments but take a long view on the returns. Most people do not need their retirement money tomorrow, so over reacting to something happening today which could impact their future decades down the road is not advised. It is best to make decisions that are measured and financially based not emotionally based.
Available for Interviews: Kathleen E. Owings.
Kathleen E. Owings is Principal and Financial Advisor for Westbilt Financial Group. She was named one of the 4 Under 40 in 2018, a prestigious award given by the National Association of Insurance and Financial Advisors to only four young advisors in the country. Kathleen manages assets for individuals, families, and businesses to the highest standards of fiduciary duty.
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