Read this Periscope to learn more about one interesting benefit of having a financial planner that you might not have thought of before: mental health. Also, scroll down to link to thoughts about inflation, the economy and the death of the 60/40 portfolio.
For many people, money is a source of stress and anxiety. This can be especially true during tough economic times, when job insecurity and financial instability are commonplace.
But did you know that working with a financial planner can actually help improve your mental health? These can be attributed to the fact that having a financial plan gives people a sense of control over their finances, which can reduce stress and improve mental health.
If you’re struggling with your finances, consider opting for financial planner services. It could be the best decision you ever make for your mental (& financial) health.
The pandemic was hard on our mental health
One in three people have experienced anxiety over the last year and a half, compared to one in twelve before the pandemic. One in four people have depressive symptoms, compared to one in fifteen before Covid-19.
The pandemic was hard on our mental health. And now this—a bear market? Ouch!
We are only human. Of course we were feeling fearful going into this swooning market. And if the news about equity markets, bad economic predictions, war and more makes us more fearful, it is only because we are more human!
Fear has a greater grasp on human action than does the impressive weight of historical evidence.—Jeremy Siegel
We don’t know when the markets will improve. We do know that the news will worsen the way we feel about it. No shame in this. There are no facts about the future.
However, you can have a conversation with your financial planner, who can translate current events through history and perspective. We can talk about what it means to you in light of your personal, real-life financial plans. You can change things, if you and your planner agree that is the correct course of action.
But the odds are that your plans did not change, and neither should your portfolio of diversified, well-thought-out equities and (possibly) other investments too. A GREAT benefit of having a conversation with your planner may be the immediate sense of relief you feel: “Ah, someone who knows me, knows what is going on, and is looking out for me.”
In fact, you might not realize the greatest financial benefit of your financial planner for many years. I’m not ruling out the possibility you could earn more returns, and sooner, without the planner than with. But I am saying that over the long haul, your odds are significantly increased with his or her help. Add the two together—the emotional and the financial—over the short term and the long term, and I think you will see why we are optimistic!