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Trying to Hang Ten in a Tidal Wave

By Michele T. Sarna, AIF, AWMA
Uncertain financial times don’t have to feel like a tsunami.

The year is 2020 and I’m on an island called Pandemic. The plan was to relax and enjoy the spring while preparing for the summer surf season. As I look out to sea, the series of waves catches my attention. There is a calming element to watching the tide go in and out. Depending on the time of day though, the waves get quite large causing a bit of anxiety wondering how big they may get. 

Am I prepared for the different scenarios that may occur? Do I have time to wait out the overwehlming wall of water that lingers in front of me? What if I’m not as prepared as I thought I was? If an unexpected event were to occur, do I have enough time to recover? To stay the course?

It’s a common scenario for similar questions to play out during normal financial planning sessions, and the answers are constantly challenged in times of great uncertainty. The ever-changing tides we experience cause us to react with extreme emotion, to possibly change our course, and to look for a more stable evironment. However, during uncertain times, it’s important to remember your plan. 

How do tidal waves affect your portfolio?

If your investments are properly allocated for your age, needs and goals, minor tweaks may be all that are needed to rebalance it. When situations like our current environment occur, it’s a good time to review and rebalance your investment accounts, if necessary, to ensure the investments remain suitable to provide future funding for your financial plans; whether they be short-, mid-, or long-term goals, each set of waves has its own characteristics to conquer.

Life has posed many tidal waves in our financial markets – the Great Depression, 9-11, and the 2008 Recession to name a few; however, with time, we bounced back. The calm tide will return again. Staying the course is paramount to your financial success.

Michele Sarna is a financial advisor at Beacon Pointe and can be reached at
(760) 932.0930 or msarna@beaconpointe.com. 

Provided as information only and should not be considered investment, tax, or legal advice or a recommendation to buy or sell any type of investments. Asset Allocation, portfolio diversification, and risk strategies cannot assure or guarantee better performance and cannot eliminate the risk of investment losses. Form ADV contains important information about Beacon Pointe Advisors, LLC, and may be viewed at: adviserinfo.sec.gov.

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