Our worlds have certainly been tested in these last few years.  Coming off the back of a world-wide pandemic, the first in 100 years, and now faced with daily footage showing the horrors of wars and discontent across various countries, it is understandable that many investors are nervous about the impact of these events upon their hard-earned savings.   Simply looking at returns in the last month only heightens such fears, with growth assets like Australian Equities returning -3.14% and Australian Listed Property returning -6.19%.   Even defensive asset classes such as Australian Bonds have returned -1.35% in the last month¹.

Feeling anxious is understandable.   It is times like these we often see investors make emotion-based decisions in the short-term, which negatively impact their potential returns over the longer term.

This is where the value of financial planning comes into play.  Financial planning literally does it’s best work when times are tough.  When markets are soaring, every man and his dog will be telling you about the level of profit made on (insert investment type here).   While boasts can be made about having great financial insight, it’s actually not all that hard to make good financial decisions in up-markets.

At Income Solutions, we are very proud of our clients and the journey they have taken to secure their financial futures.  Our clients have invested their time, helped us examine their needs and have created well-defined and achievable goals and objectives.  This investment of time is no light and breezy task.  Defining life goals and making important decisions can be emotional and daunting, and some people find it easier to find continual distractions rather than commit to this task.  However, those who can say “Yes we have done it” can look to their long-term plans knowing that short term market volatility has been factored into their financial modelling.  These clients have valued the education provided and understand that investment markets experience ups and downs.  Our clients understand that holding your ground and sticking to the plan in times of volatility provides you with the best chance of still being on the scene for the upswing when market conditions change.  This becomes the defining factor in how well your emotions can handle market volatility.   Planning.    Education.   Reviewing.     3 very important words that provide comfort in times of market volatility – because market volatility is something that has been experienced in the past, is evident in present times, and will come around again in the future.   History has shown this to be true:

If you are not already a valued client of Income Solutions, contact us today.  We’d love to meet you:

• We are next running our free Common Sense Investment presentation on Wednesday the 8th of November

or

• Contact us to book an obligation free meeting

¹ Source – Australian Unity Research Insights, October 2023

This information is of a general nature only and has been provided without taking account of your objectives, financial situation or needs.  Because of this, you should consider whether the information is appropriate in light of your particular objectives, financial situation and needs.