Investing Can Be scary
Investing seems like a big deal, might even be scary for some but there are many options when it comes to investment – the most important thing is defining your risk appetite. There are tools to help determine this, it is all about knowing what you want, setting goals and acting calmly. Financial advisers are known to help immensely during these processes and also to keep you calm and collected through volatile times such as these.
Along with news on the virus there are huge amounts of information in all news sources about markets going down, support from governments, layoffs, bull markets, bear markets, volatility, losses, reactions and so on. These may make the thought of investing even more scarier. Trust us, it isn’t scary at all. Saving and investing through a crisis can help put you way ahead as markets have become undervalued and the previous lofty valuations have reversed.
There are simple principles on what to do in times like these, investing a fixed small amount on a regular basis for a long term goal could help ‘smooth out’ market movements. If you avoid being preoccupied with daily movements, invest smaller amounts regularly to benefit from the short-term fluctuations will get you to your goals. . The best opportunity is obviously making the investment when prices are at rock bottom but stressing about getting the timing right is of no use as nobody can predict the outcomes.
The Emotional Aspect:
Although financial matters seem like they are to do with numbers there is actually a big emotional aspect to it. Sometimes saving may make you feel like you are depriving yourself of what you want today or markets fluctuating may make you feel stressed and lead you to make knee jerk reactions, a financial adviser is always there for you to remind you of your bigger plan and to keep you on track towards your goals.
Help is at Hand:
Speaking of financial advisers, we are TallRock Capital, a financial advisory firm providing services to expats in Singapore to provide value to our clients in many ways, from goal setting to tax planning to behavioral coaching for saving and endurance through tough times. Drop us a line and we can have a complimentary session to get you started. Whether you work with us or not we are happy to talk to you on managing your finances on any level. We can have a chat about the definitions of the terms you are hearing these days; bull markets, bear markets, volatility, inflation, compounding interests, risk appetite, alternative investment channels and tax benefits. If you are a seasoned investor we can talk about the benefit of these times and discuss strategies.
Do something today that your future self will thank you for, start saving or start saving more!