In the first weeks of the COVID pandemic, when market values declined sharply, many investors did what comes instinctively in times of crisis: they tried to withstand the immediate impact of an unforeseen setback. The financial objective at the time may have been nothing more than gaining stability. The instinct was likely the need for protection in the short term, with the understanding that long-term objectives could be reassessed when the time was appropriate.
Returning to Normalcy
In the COVID era, we’ve become accustomed to thinking of a return to normalcy as a process that will happen in gradual phases. What we might term “Phase One” was merely absorbing the impact of the market correction. Now, a couple of months removed from the onset of the crisis, we may be sufficiently stabilized to move on to “Phase Two” of managing the financial challenges COVID has presented, with a longer view of our own personal and financial objectives.
For your individual portfolio, the next phase may start with a thorough evaluation and stress test of your current investment mix. Did you leave yourself more vulnerable to the recent downturn because you haven’t reviewed your allocation lately? What adjustments can you make that make better prepare you for the next setback?
We can help you organize your financial life into three key strategies: Liquidity-to help provide cash flow for short term expenses, Longevity-for longer term needs, and Legacy-for needs that go beyond your own.
That framework – Liquidity, Longevity, Legacy – can be the foundation of a long-range financial plan that may help better prepare and guide you through with confidence.
Matt Hansen joined UBS in 2015 as a Senior Vice President – Wealth Management. He holds certifications both as a Certified Financial Planner™ and a Certified Exit Planning Advisor (CEPA®). Matt works with business owners to help them with retirement plans, accessing capital and guiding them through an eventual transition with succession planning.
Timeframes may vary. Strategies are subject to individual client goals, objectives, and suitability. This approach is not a promise or guarantee that wealth, or any financial results can or will be achieved.