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I can understand if you're feeling frozen at the moment.
Here are the reasons I hear most often from subscribers:
- Wondering, are we close to the bottom or on a cliff edge?
- How will rising costs and interest rates impact me?
- I am trapped in “safe” investments with a big loss
- I do not want to take risk at the moment
- I need a better - more robust - investment strategy
- Too much uncertainty at the moment
- I am overwhelmed with all the investment choices
I can understand that they feel that way, it is not an easy time to be an investor. BUT the good news is all these problems can be addressed or managed.
A great time to be an investor
The thing is all the uncertainty makes it a great time to be an investor.
Here is why.
Because of falling stock prices, investors losing hope and selling everything at the worst possible time, makes it the best time to buy quality undervalued companies that will give you great returns for years to come.
Important is to not take too much risk so that you can hold even if markets fall a bit more. Also, you must buy the right type of company - quality undervalued companies.
Actions you can take right now
Here are a few safe actions you can take to get yourself unfrozen and moving forward.
#1 Take inventory of all your assets and amount you owe.
Not just investments but other assets as well as properties, insurance policies, ETFs, company stock ownership plans and investment and retirement accounts.
#2 Find out what the profits and losses are on all of these assets.
This is to give you an idea of where you have lost the most so you can build that into your investment plan going forward.
While you are at it make a note of the fees and expenses of all these assets. Management fees for example.
#3 Draw up a simple budget of all income and expenses.
Plan in extra amounts for energy costs as well as general inflation price increases.
Even a rough idea of how your income meets your expenses will let you move forward with your investments.
When you do this remember to take your investment savings into account so you can see if you will be adding to or withdrawing from your savings.
#4 Make a list of important dates
Make a list of all important dates related to your finances, for example:
- Mortgage interest rate expiry date
- Maturities for example bonds being repaid or insurance policies maturing
- Rollover dates for investments in bonds or anything else you have committed to
- Tax deadlines for example to record tax losses against profits that you realised already
- Dates for future large expenses – children going off to university for example
#5 Do you have concentration risk
Take a look at your assets in all accounts to see if you have a large amount of money invested in anyone asset or type of asset - for example property or an employee stock ownership plan.
Be especially careful off employee stock ownership plans. Remember if you still work there, you have a lot of risk related to one company. If the company falls on hard times your stock options may decrease in value, and you may lose your job.
#6 Make a list of next steps
After doing all of the above make a summary of your current financial position.
- List what you have invested and where – group similar assets together so you can see concentration.
- What items you need to get more information about.
- What important dated are coming up and what actions you would like to take. For example, have cash available for future large expenses.
- What you would like to change – buy more of or sell
What is the smallest step you can take
I know this is a long list of things to do and it may be overwhelming.
If so, think of the smallest action you can take to move forward. Call the bank for example.
If any one item makes you very uncomfortable, make this your first priority. Remember problems are not going to go away if you ignore them.
What is you biggest problem?
What is your biggest hurdle to moving forward?
Did you find this email helpful? If not, what do you need help with?
Either way I would really like to know.
Your, helping you get unfrozen analyst
PS I know markets are still uncertain BUT have you already started building your buy list? If not, why not sign up today and start now.
PPS It is so easy to forget and put things off why don’t you sign up right now?
