As the end of COVID-19 pandemic appears to be highly unpredictable, it is better to readjust all the aspects in your life, including your investment. Accordingly, the way to invest during the coronavirus outbreak should be different from the usual, but how?
Investment advisor Ric Edelman shared his knowledge with CNBC pertinent to how to invest during the pandemic. He, furthermore, expressed his concern that people might yet to come to terms with the mess.
It is, indubitably, a mess. With the pandemic said to have yet to reach its peak, the stock markets are currently in a slight shambles. The market is highly volatile, mass-unemployment and recession are becoming a threat, and some business might have to shut down.
With regards to the mess, Edelman suggests a way to invest during this hard times to possibly survive financially. Aside of sticking to the diversified portfolio, he also advises to make decisions based on your age and where you stand financially.
Also Read: More People Invest in Gold During COVID-19
Young Investors
For young investors, Edelman suggests that they bear with the situation. This is so because the pandemic is over, they still have time to recover in the following years.
Furthermore, for those who are considerably financially independent by now, he advises the young investors to use this buying opportunity. As the price almost hits rock-bottom due to the coronavirus, this might be the right time to buy invest in more securities and diversify the portfolio more.
Nearing Retirement
If you are nearing retirement age, Edelman urges you to start to focus on your retirement or personal cash reserve instead of stocks. This is because anything can happen during at a time like this, so it is better to be safe than sorry.
Also, you might consider to delay your retirement time and add two more years before you retire. Edelman adds that it is better for people who are also at their retirement age to reevaluate their financial decisions more starting from now on.
Retired
If you are at this phase, there are two options available. Firstly, should you have enough cash reserve, Edelman suggest that you halt your investment. Instead, focus on paying bills and loans because the market is not good at the moment.
Secondly, if you do not have enough cash reserve, Edelman warns you to begin using your pension money or social security benefits to help you survive.
Also Read: Coronavirus Moment, It’s Time for Stock Investment