We have experienced two significant financial events in our lifetime, the Great Recession, and now COVID-19. While neither was avoidable, what we learn will hopefully prepare us for the future. Before these two events, the Great Depression was the most financially devastating event in our country. However, the Great Depression does not compare to how economically devastating COVID-19 will be.
To reminisce, in the fall of 2008, America was in the middle of the Great Recession. The US Government was considering shutting down. The media continually reported company layoffs, and the stock market crash was a daily event. This period was stressful for many as they lost jobs or saw the valuation of their investments and retirement assets drop. If you were ‘adulting’ during this time, likely you were affected.
What did you learn from the Great Recession twelve years ago? What have you learned going through today’s COVID-19 pandemic? Has either event changed your view of the world, your career or industry, or how you manage your finances and retirement assets?
Recessions are frequent, occurring on average every eleven years. But COVID-19 is unlike anything previously:
“The magnitude and speed of collapse in activity that has followed is unlike anything experienced in our lifetimes,” Gita Gopinath, International Monetary Fund’s Chief Economist.
As we embark on the future, now is a convenient time for you to review your current financial situation and plan for your future. Protecting yourself against making the same financial mistakes again is critical. Many people were not prepared by having an emergency fund in place, had not periodically rebalanced their portfolio, and were overspending thinking their jobs were secure. Have you changed your habits and addressed these items?
As always, I am here for you during good financial times and bad and can assist you with planning for your post-COVID-19 future.