The world is changing rapidly as the fallout of the coronavirus pandemic continues to play out across the globe. The yachting sector certainly isn’t immune, and we’re distressed to hear of canceled charters and owner trips and of crew having spent time stuck in transit during what’s been the most turbulent time the industry has ever faced.
While your health and the health of your loved ones is paramount, we also know from speaking with many yacht crew that the crisis is a very real concern as it relates to your personal finances. It’s perfectly normal to feel worried about what is happening to your savings and investments at a time like this; however, our first and foremost advice is to not panic.
Don’t let emotion cloud your decision-making. We also realize that’s easier said than done, but for many reasons, it’s the most logical response when markets experience volatility. Short-term volatility is a characteristic of investing; markets by nature move up and down but always rebound and, historically, long-term performance evens things out. Keep in mind that short-term decisions have long-term implications, so the most important thing you can do is to stick to your long-term savings plan and financial goals. As counterintuitive as it may seem, you need to ride the wave rather than jump ship. There are even good reasons to stay optimistic and see opportunity where others see gloom.
Don’t let emotion cloud your decision-making. We also realize that’s easier said than done, but for many reasons it’s the most logical response when markets experience volatility.
In the immediate term, there are several things you can do to feel in control over your finances during times like these, including separating fact from fiction. Daily news broadcasts of markets falling, job losses, and economic impacts don’t help; it’s easy to feel overwhelmed by the constant hype and fearmongering that surrounds us. However, the media aren’t personal financial advisers, nor are they best placed to offer savings and investment advice — especially when it comes to your personal circumstances.
Use this opportunity to reassess your financial goals before making any decisions. How can you thoughtfully adjust your personal strategy to stay on track to meet your goals? Don’t have your goals written down? Take the opportunity to do it now as it will help to give you some sense of control over your financial situation. Having everything written down in a documented financial plan will help you to avoid making fear-based decisions.
As financial advisers, our focus is clear: to support you in your financial planning and decision-making during the good times and the bad. We’re not going anywhere.
This article originally appeared in the June 2020 issue of Dockwalk.