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.
Do you watch the weather channel all day when you see sun and clear skies for the weekend forecast? My guess is probably not. Why am I asking you this? Because similarly in the financial world the TV talking heads, magazines, fund managers, guest economists on the CNBC panel, and the like, have no vested interest in sharing the sort of behavior driven and common-sense financial planning tips that we share with our clients.