What we learned in 2020
Written on the 4 February 2021 by Wayne Billington
From a personal perspective, 2020 taught us to be more adaptable, flexible and above all else, much more resilient.
From a financial perspective, the doom and gloom that prevailed for most of 2020 did not eventuate to the extent of the predictions that's not to say it's still coming my crystal ball is no better or worse than anyone else's.
However, in 2020, there were investors and retirees that achieved a relatively strong outcome given the prevailing circumstances.
And with the benefit of hindsight, there are lessons we can all learn as we navigate into 2021.
Stay focussed on what really matters
Whatever is going on or going down - staying focused on what matters the most, even in a changing economic environment, pays off this means setting clear goals and strategies then sticking to them as best as you can just as in the book Hitchhiker's Guide to the Galaxy Don't Panic!
Adjustments and tweaks will always be needed however, wild swings in your investment strategy will simply put you further behind when the upswing starts.
With that said, we thought we'd share with you some very timely and pertinent points from a recent economic outlook piece from Vanguard.
Vanguard's key themes for 2021
Our virtual environments are saturated with coverage of the markets, the global economy, and the COVID-19 pandemic. So, it's understandable for you to wonder how these factors might affect your investment plans and the potential achievement of your long-term financial goals.
Vanguard has designed a quick overview of the economic opportunities and challenges you may face in 2021 to help you keep focused on what matters the most.
Think of it as a conversation starter, a natural way to connect with us and help keep you on course toward achieving your financial goals.
Uncertainty about where the global economy is headed can breed an atmosphere of anxiety and uncertainty, especially with the backdrop of an ongoing pandemic.
When it comes to the global economy and the markets, adopting a proactive approach can go a long way toward alleviating your worries and averting emotionally driven investing decisions.
Vanguard advocates a "three A's" behavioural approach:
Assess the Situation
Address the Situation
Audit your Engagements
Find out more about the economic outlook post Covid-19.
Contact Parkside InvestorPlus for a non-obligation initial consultation about your financial structure, plans and retirement goals.
About: Wayne is the Principal and Director of Parkside InvestorPlus Pty Ltd, and is authorised to provide financial planning services to clients.