With Canada and many other countries practicing physical distancing or participating in complete lockdowns because of the COVID-19 virus, thoughts are turning to what the world may look like after the restrictions have been lifted.
Many people are expressing a desire for life to return to how it was before the arrival of this public health emergency. However, it is likely that some aspects of our lives will have been irrevocably changed because of COVID-19.
Now that governments around the globe have set new precedents in restricting the movement of their citizens, future events, such as new flus, diseases and other declared emergencies may see similar global societal quarantines and lockdowns.
So, the question is how does one best prepare for such an event? There is a lot of information abound on emergency preparedness that includes links to Federal and Provincial websites offering tips about the types of things you can do to be prepared. These steps can include emergency food supplies, some cash on hand - if banks are closed for a short period of time - emergency candles, batteries, bottled water and so on.
Other things that may change are basic financial planning and asset building strategies. The world of the future may no longer work exactly the same in the next 10-30 years as it has in previous decades. Thus, concepts such as cash flow management, managing debt, credit cards, and cash reserves may need to be reviewed considering this most recent health and financial event.
The investment world may look different in ways that may be hard to anticipate. The market correction that started in the last week of February was the fastest on record and Central Banks around the world responded with measures that were dramatic in terms of both speed and volume.
To date, the US Federal Reserve and the US Federal Government alone, have introduced over 40 different financial initiatives1 to deal with the economic disruptions caused by COVID-19. Likewise, for a time, Canada was introducing so many new financial strategies2 that policy announcements were sometimes being made several times a day during March and April. This was an all-out governmental effort to financially support consumers and businesses facing immediate economic stress because of COVID-19 and to help prevent much worse economic outcomes.
This financial event is different from what occurred in 2008 in that the trigger was a health event that hit when investment markets were fully valued. The 2008 financial crisis was, broadly speaking, a credit crisis focused on US real estate mortgage debt levels.
Life is complicated and figuring out how to reach your goals in these uncertain times can be overwhelming. In the coming months, we will discuss strategies for your investments and overall financial strategy that speaks to planning for the years ahead.
We will look at your specific circumstances and ensure your plan brings you closer to living life confidently while on the journey to achieving our personal financial goals and objectives.
In the meantime, we would love to hear your thoughts. Please feel free to reach out to us any time by phone or email. Perhaps a video chat? Let’s arrange a date and time for a catch up.
Be safe and stay healthy!
Our best,
Tom & Snigdha
1US Coronavirus Response. 2Canada Coronovirus Response.
Copyright © 2020 AdvisorNet Communications Inc., under license from W.F.I. All rights reserved. This article is provided for informational purposes only and is based on the perspectives and opinions of the owners and writers only. The information provided is not intended to provide specific financial advice. It is strongly recommended that the reader seek qualified professional advice before making any financial decisions based on anything discussed in this article. This article is not to be copied or republished in any format for any reason without the written permission of AdvisorNet Communications. The publisher does not guarantee the accuracy of the information and is not liable in any way for any error or omission.
