Financial Observation for 2021

by | Jan 7, 2021 | WWC WorthWhile Reading

I think we can all agree that 2020 was an unprecedented time.  Nearly everyone had to face the financial consequences and stress that took over as a result of the coronavirus pandemic.  People had an eye-opening look into the validity of any financial planning they may or may not have had in place.  But, as the new year arrives, most clients seem to be feeling better or, at least, holding their own.  This does not mean that they are not worn out by the ups and downs and longevity of the past year, nor does it mean that they are returning to pre-pandemic levels of confidence.


The pandemic did, however, shed new light on the value of having a financial planner.  There is Increased activity in searching for an advisor for the first time or shopping for a new one.  Some do-it-yourself individuals may not care to continue going it alone and others may realize the necessity of planning ahead, so they’re looking for an advisor for the first time.  Individuals who already have an advisor may have come to the conclusion that they want to change advisors.  The pandemic inspired a deeper client/advisor relationship, as clients leaned more on their advisors, increasing interactions and strengthening relationships.  But those who did not experience this bonding are searching for an advisor who can give them the strength, confidence and authenticity they desire.


Current and potential investors are looking for successful investing that blends their desires with the way they live.  They want help achieving a sense of confidence and preparedness, so they’re turning to advisors about products, investment strategies, market volatility and economic uncertainty.  Clients are even more receptive to having an advisor assist them in their financial journey now, as the past year has shown them the harsh realities of lack of regular savings, retirement savings, and funds for unexpected emergencies or job loss.


As we look into the future, no one has control over a disaster such as the pandemic.  Government policies seem to come and go and we certainly cannot control the markets.  What we can do is control our reactions to these events by being better prepared.  There is a growing need for essential planning, saving, long-term goals and disciplined investing, those actions will help control the things we can.


As Fee-Only CFP® professionals, that is what we pledge to give to those who seek us out.  Our passion and our duty are to work jointly with clients in helping them achieve a sense of well-being about their financial future by having more confidence, control, flexibility and security in the decision-making process.  As always, our advice in searching for an advisor is to do your homework, ask the hard questions and look at two or three different candidates before making a decision.  The fiduciary planner will be totally aligned with your goals and desires and a good match will be the best outcome for you and your family.


Have a great weekend!


Source:  Financial Planning, “Confidence, savings tick up among pandemic-tempered clients”, and “A client’s lesson in control in an out-of-control world”, November/December 2020, pp 9-12 and pp 14-16.