Even though the markets have had a big bounce back recently, current economic data tells us we’re in a steep economic contraction due to COVID-19. How long it will last in unknown. So how can we protect ourselves when we can’t predict the future?
We can take a lesson from some of the most successful companies in the world: Take a look at what might happen, think through how it could affect us and create contingency plans. Here’s how:
- Sit down and put all your concerns on the table. If you have a spouse or partner, include them too. It might sound counterintuitive, but one of the best ways to ease your mind about uncertainty is to build “what if” scenarios. Ask yourself: What if business dries up? What if I lose my job? What if this drags into next year?
- Work through each scenario and think it all the way through. Ask yourself: How would my life change if this happened? What would we need to do to adapt? By walking through those scenarios, you’ll be taking control of the uncertainty and giving yourself a playbook.
- Write down your action steps. In the future, if one of your contingencies happen, you’ll know what to do.
Also, please share your contingency plans with your financial advisor so they can see your concerns and discover how to help. Contact our financial advisors if you need assistance.
It’s normal to worry about an unknown future. But we’ve been here before — 9/11, The Great Recession and now the pandemic of 2020. Each one has tested us, but we’re still here.
We wish we had a crystal ball so we could tell you what comes next, but no one does. So we focus on what we can control: Goals, mentality, behavior and contingency plans.
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