The volatility in global markets over the last year has left most rattled, and has impacted our financial portfolios possibly for years to come. As serial worriers, we tend to make decisions based on emotion and not fact.

Making hasty decisions regarding your financial portfolio could be detrimental.

Try and avoid some of these basic financial planning pitfalls.

Make emotional investment allocation decisions – it is very easy to panic when you see your investment balance drop and you want to start changing fund allocation. Remember why you chose your investment strategy in the first place and keep the long-term goal in sight. Long term investments are set to weather the markets over time.

Not building that emergency savings account – if the current situation has taught us anything, it’s that we were not prepared financially. Most of us did not have enough emergency savings to cover reduced salaries, unemployment, medical costs and unforeseen expenses. Commit to putting away money every month for your emergency fund so you are covered if there are unforeseen circumstances in the future.

Not consulting a financial adviser – your financial adviser is up to date with the current economic climate and has expert knowledge. They are unemotional and unbiased and focus on the long-term goals of your financial plan. Do not make any financial decisions without consulting them first. 

Missing your annual review – with the market currently still volatile, your financial adviser will help rebalance and diversify your portfolio accordingly so that you can get the best returns possible. Your financial circumstances might also have changed, and they can revaluate your financial goals and make adjustments to your financial plan.

Assuming your estate planning is up to date – Life happens, and along with it change. Don’t assume your will and estate planning are up to date. You might have a new family member or are now married or divorced or a single parent.  Or alternatively you may have acquired new assets or sold a property that was mentioned in your will. Anything could happen in these uncertain times. Check with your adviser about revising your will during your annual review. (forbes.com)

Speak to your deVere Acuma adviser about reviewing your current financial portfolio and will to ensure you are prepared during these volatile and uncertain times. [email protected]

Please note, the above is for education purposes only and does not constitute advice. You should always contact your deVere Acuma adviser for a personal consultation.

* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.