Your kids are no doubt noticing the changes in the world, and maybe your family’s own financial situation, because of COVID-19 — as well as your reaction. Here’s your chance to empower your children with lessons for their future.
Many of us are living through our first REAL stock market meltdown. For myself & most of my 30-40 year old clients, we either weren't out of college yet or we weren't making enough money (and didn't have enough money certainly!) for the pain to really reach us on a physical and emotional level. So this all feels new...which makes it feel even scarier and more unnerving. I get it...and you're not wrong...it is both of those things! But, please, take the time to ask your parents what they did in 2008...and knowing what came after, what they would have changed in their investment behavior if they could? And read my post below...because, trust me, it seemed like the world was coming to an end back then...and then it didn't. This too shall pass.
People get into trouble when they let their emotions destroy their financial plans, like when they let fear push them into panic selling their investments during a stock market free-fall. This is similar to and related to the COVID-19 panic now disrupting lives and markets worldwide.