By Jake Withnell, CFP®
At the beginning of the COVID-19 pandemic, few people thought that we would still be dealing with its fallout at the start of 2021. Unfortunately, we are still facing the daily uncertainty stemming from this global health crisis. We are still worried about the toll it’s taking, not only on our health but also on our economy and the financial stability of our families.
Fortunately, there are many strategies you can employ to guarantee you are doing everything you can to protect your wealth, even in the uncertain times in which we find ourselves today. Below, we have compiled a few of our most straightforward strategies that can be beneficial in protecting your family’s wealth and financial stability well into the future.
Stay Current On Public Policies
This goes without saying for many of us who are very dialed into the news these days, but remember to pay attention to local and federal policies that could impact your family or your business’s finances.
For example, the CARES Act contains many provisions that could help you if you own a small business. With this legislation, Congress wanted to be able to help businesses that have lost a significant amount of revenue this year due to the pandemic. To that end, the CARES Act allows business owners to file amended tax returns for the last five years and apply their net operating losses from 2018 to 2020 to their incomes in the last five years. (1)
Also, keep an eye out for new legislation that could also be useful to you. With both chambers in Congress and the presidency controlled by one party, there will be less obstruction to any financial aid legislation that could help businesses and families.
If you were concerned about the volatility of the stock market brought on by the pandemic, you were not alone. Many people panicked and considered selling their stocks.
At JGP Wealth Management, we believe that a sound investment portfolio requires a balance of patience as well as strategic moves, as investing is not about timing the market—it is about time in the market. In short, keep your eyes on the prize and don’t lose sight of your long-term goals.
Prepare For Tomorrow
The last year has taught us that we cannot predict what will happen next year, tomorrow, or even in an hour. It is an important reminder for any investor to diversify their portfolios to protect their wealth and weather any financial storm.
Diversification is an important risk-management strategy that mitigates risk by investing in a wide variety of investments. The idea behind it is to neutralize any negative performance of certain investments with the positive performance of others. Portfolios can be diversified across many asset classes, such as stocks, bonds, ETFs, or commodities, for example. Diversified portfolios could also contain U.S. Treasury bills, CDs, or foreign securities.
Revisit Your Financial Plan
Your financial and retirement goals probably have not changed in the last few years, but the environment in which you created your original financial plan has shifted drastically. As many social events have been canceled, now may be the perfect time to revisit your financial plan.
Some people worry about whether their investments will generate enough in the future to maintain their current lifestyles into retirement. Not sure if your investments are hitting the mark? That’s okay. We at JGP Wealth Management have been closely monitoring the pandemic’s impact and can help you adjust your financial plan accordingly through conversations about asset allocation and your specific portfolio’s risk profile.
We’re Here For You
We know these unprecedented times can take a toll, and we are here to help you with any financial question or concern you may have. Please reach out to me at 503-446-6450, email firstname.lastname@example.org, or schedule an introductory phone call online.
Jake Withnell is a financial advisor at JGP Wealth Management, an independent, fee-based financial advisory firm in Portland, Oregon. Jake is known for going the extra mile for his clients and for his passion for working tirelessly to help his clients find solutions to their financial concerns so they can confidently live out the life they want. He prioritizes listening and understanding as the foundation of his relationships with his clients, and his highest hope is that they can spend more of their time and energy on their passions knowing he is watching over their financial future. Jake specializes in serving business owners, Nike executives, and retirees, and plays a key role in JGP’s portfolio management process, building and analyzing financial models, and conducting client cash flow analyses.Jake graduated from Eastern Washington University with a bachelor’s degree in professional accounting and finance. He is a Certified Public Accountant (CPA) and a CERTIFIED FINANCIAL PLANNER® (CFP®) professional. Jake’s claim to fame is his time playing tight end for the Eastern Washington University Eagles, all while earning four-time Big Sky Conference First Team All-Academic honors! Jake values giving back to his community and does this by volunteering with the Children’s Cancer Association, Family Building Blocks, and New Avenues for Youth. In his free time, Jake takes advantage of the many outdoor activities the Northwest has to offer, such as trail running, mountain biking, and hiking. He loves traveling and spending long weekends at his family beach house in Seaside, OR. To learn more about Jake, connect with him on LinkedIn.