Rising Tide Blog

Rising Tide was in its infancy when the global financial crisis wreaked havoc in 2007-08.

13 years on, it still remains vivid in my mind. I see it as a blessing, that I was forced to get comfortable having heavy duty conversations with people about their money so early on in my career. 

Now, fast forward to today and the feeling is eerily similar. Emotions are high, logic seems to be wavering at times and there are a lot of unanswered questions. Seeing our investment and super balances go up and down like a yo-yo is not what I would call fun. 

I think one of the hardest things at a time like this is how to choose which decisions to make.  I can promise you that no one has a crystal ball and, at present, it seems like the situation is changing by the hour.

This means that the choices you make with your money need to be well considered – because the actions that people do and don’t make in times like this will affect them for a long time. 

So, what’s the right thing to do when share markets are all over the place, and bad news is commonplace? Sadly, there’s no simple answer, but here are a few steps I think everyone should take. 

1. 1. Don’t read everything. There are a lot of opinions out there and lots of them are not what I would call trustworthy. We have lots of respect for what Vanguard do as a fund manager and have found their content to be very easily understood;
   
   Vanguard CEO on Coronavirus and Market Volatility
   
   Coronavirus Uncertainty
   
   
2. 2. Whilst it is front of mind, review your financial plan and clarify your goals. Is how you are invested (both in your super and other investment accounts) congruent with your long term goals? Now would be a good time to make the time to sit down with your adviser to discuss things in more detail.
3. 3. Don’t make emotional decisions, and remember that everyone’s situation is different. What works for one person won’t necessarily work for you.

All said, remember to take a deep breath and think about your long term plans and put the plan into action.