By OnPoint Community Credit Union
Consumer confidence across the US and here in the Northwest has hit a 12-year low, with more than 27 percent expecting their financial situations to be worse in one year. As economic uncertainty lingers, many households are feeling the pressure and searching for ways to regain control and clarity.
“We understand people are feeling unsettled about the current economy,” said David Yates, Financial Advisor with OnPoint Investment Services/Raymond James at OnPoint Community Credit Union. “Every situation is unique, so it’s important to create a strategy that works for you and your family—especially when there is a lot of rhetoric to sift through in the news.”
OnPoint Community Credit Union shares five tips for helping financial anxiety and navigating this period with confidence.
Make an investment plan
Whether you have been in the workforce for years or are just starting out, an investment plan is a critical step. Knowing the actual numbers is key. Income, expenses, debt and retirement savings is baseline. Putting those into a personalized plan based on your goals and risk tolerance can take the fear out of some of the unknowns. And, there’s no such thing as starting too early or with too little. Brokerage funds and other options require just a few dollars to begin investing.
Find a trusted advisor
Every financial situation is different and needs an advisor that is trained and prepared to help their client achieve it. Taking the time to choose the right advisor can make a big difference. An initial consultation with an advisor is often free of charge, especially if you go through your existing financial institution.
Play the long game
It’s easy to feel pressured to make quick decisions when the economy or stock market undergoes a dramatic change. Solid investment plans are intended to weather the ups and downs of the market and economy and keep one’s retirement on track. Staying focused on your long-term goals can help avoid costly mistakes driven by short-term stress.
Be cautious about online financial advice
Social media and online sources are all about getting views, even at the expense of accuracy or reliability. Financial influencers, or “finfluencers,” may not have the qualifications or experience to back up their advice, are speaking to a very broad audience and not specifically to your situation.
A good financial advisor, on the other hand, should be able to break down complicated topics and customize advice based on your situation. Financial advisors are also compensated based on their advice, rather than clicks/traffic.
Set regular check ins
Meeting with financial advisors frequently—at least once a year—is a good rule of thumb. Just like a doctor helps maintain physical health, a strong relationship with a financial advisor is critical to long-term financial well-being. Look for an advisor who listens closely to concerns and creates tailored plans.
Navigating the world of investing can seem complicated and intimidating, especially during a time of economic uncertainty. Establishing a financial plan, staying the course and maintaining a beneficial relationship with a financial advisor are tactics that can clear up the confusion.
OnPoint has financial professionals at two SE Portland locations—3404 SE Hawthorne Blvd. and 9730 SE Washington St. Visit onpointcu.com for more locations, hours and information on services.