Financial Planning

Your Financial Situation During COVID-19: How’s it Going?

By Jessica Searcy Kmetty

We all understand there are risks in life that could impact our financial situation. We face lay-offs, illnesses, and general changes in life circumstances every day that have the potential to leave us without income. Some of us plan for these situations, and some of us don’t… and then almost out of nowhere, COVID-19 appeared, and life was changed for all of us.

How’s it going for you?

The COVID-19 pandemic affects every single one of us, in varying degrees. The situation shines a spotlight on finances for many families around the globe and gives us a chance to ask ourselves: how’s it going? Are we surviving financially, regardless of our individual situation? Did we have enough money saved to cover things that have come our way, or are we struggling to stay afloat? Even worse, are we already sinking to the bottom?

In “Are You $1,000 Away from Financial Ruin?” John Fales points out that “According to a recent poll, two-thirds of Americans would have difficulty coming up with the money to cover a $1,000 emergency.” This difficulty is found across many income brackets, so we’re not surprised to hear story after story of people hurting right now.

Have you been laid off?

Have your work hours been cut?

Are you a business owner without customers?

Are you a medical professional in an elective category that isn’t allowed to see patients?

Are you a parent who now needs to stay home with an at-risk child?

Whether you are facing a tough situation or not, now is a great time to plan for the future so you’re not caught off guard when the next emergency shows up.

1. Get Out of Debt – Take an inventory of what’s coming in your door and what’s going out. Once you understand your spending habits, you can create a budget and debt repayment plan to eliminate your debt. Make sure your budget includes a category for funding your emergency fund.

2. Create an Emergency Fund – Many experts suggest that a minimum of 3-6 months of living expenses should be set aside in an emergency fund, but this number can be set based on your needs and comfort level. Determine your goal amount and set aside funds each month until you have fully funded your emergency fund.

3. Don’t Do It Alone – Add a category in your budget for working with an advisor who can help you get your goals in line and help you plan for the future. With our Allos+ subscription you have access to a fee-only advisor for just $75/month.

My hope is that you have weathered this pandemic well, and that if you haven’t, you start planning today to make sure you and your family are prepared in the future.

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Allos Investment Advisors, LLC.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.

Published for the blog on May 21, 2020 by Allos Investment Advisors, LLC.


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