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Financial Planning Amidst Market Uncertainty

Donna Kline, MBA, CDFA®, CDC®

08/25/2020 — Download

A properly executed financial plan accounts for the possibility of market volatility and prolonged bull or bear markets over a lifetime. Investment portfolios should be designed to withstand sector gyrations without over-extended bias to any one category. Portfolios should also be tailored to reflect individual liquidity needs, tax bracket, risk tolerance and time horizon. The purpose of a financial plan is to balance the amount of cash currently invested and the amount of money able to be invested each year, with the level of risk that needs to be taken to generate the returns that are needed to grow a nest egg large enough to last a lifetime. The scope of that plan is different for everyone and should be precisely tailored to meet individual needs.

What happens if you are getting divorced?

Divorce is a difficult process for most people. Amidst market volatility and social uncertainty, that level of difficulty is magnified.

Support and equity distribution values can be impacted by market fluctuation and the employment environment. It is important that any agreement(s) be made with these unforeseen changes in mind. This means that “equitable distribution” should be determined by more than just two sides of a spreadsheet. The taxability of individual assets, the liquidity and risk of holding various assets, the expense of maintaining certain assets, and the ability to add to existing savings should all be considered. Even the soundest of family financial plans will need to be reworked in the face of divorce.

If you have not had the opportunity to work with a financial planner, consider doing so. If you have taken the time to work on your plan and understand the impact various market environments will have on that plan, the less likely you will be to worry in times of turmoil.

IMPORTANT DISCLOSURES

The information included in this document is for general, informational purposes only. It does not contain any investment advice and does not address any individual facts and circumstances. As such, it cannot be relied on as providing any investment advice. If you would like investment advice regarding your specific facts and circumstances, please contact a qualified financial advisor.

Any investment involves some degree of risk, and different types of investments involve varying degrees of risk, including loss of principal. It should not be assumed that future performance of any specific investment, strategy or allocation (including those recommended by HBKS® Wealth Advisors) will be profitable or equal the corresponding indicated or intended results or performance level(s). Past performance of any security, indices, strategy or allocation may not be indicative of future results.

The historical and current information as to rules, laws, guidelines or benefits contained in this document is a summary of information obtained from or prepared by other sources. It has not been independently verified, but was obtained from sources believed to be reliable. HBKS® Wealth Advisors does not guarantee the accuracy of this information and does not assume liability for any errors in information obtained from or prepared by these other sources.

HBKS® Wealth Advisors is not a legal or accounting firm, and does not render legal, accounting or tax advice. You should contact an attorney or CPA if you wish to receive legal, accounting or tax advice.


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