I don’t mean to state the obvious with the title, but I feel like it’s worth mentioning, especially as we head into a winter that may be like none other that we have seen. The next few months seem to be on course to create a lot of anxiety for many Americans. We are currently in the middle of a pandemic that many healthcare professionals are predicting will see a second wave of infections over the next month or so. There is also a transitional period occurring politically that is fraught with unpredictability. And then there is the added stress of the holiday season. Those first two stress points have the ability to shake up the markets and have impacts on the investments that could further impact your portfolio. The third stress point is always there, but could be further complicated by job losses or worry about what the future may hold for your nest egg. I’m not going to sugarcoat it, it can be a bit scary, especially when you don’t know what might happen to send the stock market on a wild ride. While I don’t have any magic solution to your anxiety, I do want to make sure you realize that you are not alone in your worries. Sometimes there’s not much you can do aside from track your investments, make necessary changes and adjustments, and keep living life. We will get through this and we will eventually return to normal. It may be a “new” normal, but it will be much more normal than what we have been going through for most of 2020. Now, as you head into this holiday season, I suggest you focus your time and energy on family and friends and the people who mean the most to you. Yes, you can check your portfolio daily and adjust as needed, but try not to let it be all you think about. Take some time to think enjoy what’s around you and don’t let fear or stress overpower you. Of course, if you do have concerns about your retirement plans, I suggest you speak with a certified financial planner or wealth manager who should be able to relieve any concerns or answer any questions you may have.
Worrying about what to do with excess money can seem like an odd thing to do, but it’s actually something that can cause a fair amount of stress. Deciding where to put that money isn’t always an easy decision, especially if you’ve already built up a substantial nest egg, have an investment portfolio, and already have an emergency fund going. The decision isn’t so much about which account needs it the most, but can be focused on what account is the most efficient use of your money or which option has the lowest tax implications. It all depends on what is most important to you and your needs. For some tax implications reign supreme, while others are more interested in dividends and growth. Once you decide what is most important to you, put your money there. Of course, you could also always just divide up the money among the multiple accounts you may own as that is always an option. Keep in mind too that the stress of extra money can exist before you even get the money, such as knowing that an inheritance from a parent or relative might be coming your way soon. The best way to avoid such stress is to formulate a plan for the money before you even get it. There’s nothing wrong with coming up with a plan for future excess cash and it can be a great way to keep concerns and worry to a minimum. As always, if you need help formulating plans, both for future and current excess money, you can always speak with a certified financial planner. A good financial planner will listen to your financial goals and desires and help to formulate a plan that you can easily follow.