Is it time to sell it all?
Quinn Waddington - Dec 20, 2018
I would love to think that everyone not only has a Financial Plan in place, but they are so confident with their Plan that they don’t worry when they see headlines about the markets falling dramatically. That would of course be wishful thinking as 90% of all Canadians admit to not having a formal retirement plan, even though it has been proven to increase emotional well-being and overall contentment. See the other important benefits below.
Having said that, even those with Financial Plans find it difficult not to worry when they see the markets fall in such dramatic fashion. There is fear that this recent correction is just the beginning of a larger recession. Although I can’t guarantee that it isn’t, I rely on my education and history to guide my clients in to well researched, unemotional decisions for their investments. More times than not, the best (and most difficult) course of action during a market downturn is to Do Nothing. Don’t sell everything, don’t double down and to the best of your ability, don’t worry. If you need to do something, then educate yourself. Give me a call and we can discuss the history of the markets. Have a look HERE for the historical returns of different asset classes and notice the long-term trend. There is also plenty of reading that can be done.
Here is a great (one-page) article from Nick Murray that was written last summer but captures the history of market corrections over the last 71 years. Since then we had another correction in February 2018 which was quickly erased with gains through the summer, and now we are currently in the middle of another. Hopefully that article gives you a little perspective of the current market correction and calms any worries that weren't calmed by a solid Financial Plan.
What is important now is that you enjoy the holidays with your family and friends. I am looking forward to having my family together. From my 92 year-old grandfather to my youngest son who will turn one on New Year’s Eve. Although relaxing probably isn’t the correct adjective for my holidays, I know it will be memorable. I wish you the same great last couple of weeks of 2018.
In the new year, as we do every year, we update Financial Plans to ensure clients are still on track with their objectives. This is a task that should be on each person’s resolution, so we take it upon ourselves to check that off for clients. This year, I will be adding a few questions on how we can continue to increase our service level and look forward to the responses.
If your financial worries are affecting your well-being then contact me today and start the process of reducing those fears by putting a Financial Plan in place.
firstname.lastname@example.org or (604) 699-0874