(The Canadian Press)

(The Canadian Press)

Financial check ups more important than ever during turbulent times like these

It is always important to review your financial plan on a regular basis, but especially now, experts say

As governments roll out plans to reopen the economy in the wake of the COVID-19 pandemic, experts say individual Canadians need to update their own financial plan to move forward too.

The stock market crash in March and the plunge in interest rates left many investors feeling uncertain and vulnerable, while still more have been left without work.

Tina Cheung, a wealth adviser at Vancity, says it is always important to review your financial plan on a regular basis, but a review can be especially important during times like these.

“During these times of uncertainty it is important to have peace of mind, and to have that peace of mind, to achieve it, is to get a financial check up,” she said.

Investors who were shocked at the state of their investment portfolios at the end of the first quarter might breathe a sigh of relief when checking their statements for the second quarter as stock markets have rallied off their lows seen near the end of March.

However, Canada’s main stock index is still down from where it was a year ago and well off the highs it hit in February before the pandemic struck the markets.

“The effects of the pandemic on the market will eventually pass, like the global financial crisis did, but if these few months created any stress or loss of sleep, we need to go back and talk about your risk appetite,” Cheung says.

But she says if your risk appetite has not changed and your goal hasn’t changed, then it is critical to think long term and stick to your plan.

Before heading into a meeting with your adviser, it is important to have a firm grip of your budget and what your goals are for the meeting.

Cheung says you need to be prepared to have an open discussion and be ready with information like your monthly income and expenses.

For some, reviewing their financial plan may mean difficult decisions, facing depleted emergency funds due to the loss of a job and little prospect for a return to work at a level seen before the pandemic.

A poll done for TD Bank found that 38 per cent of those surveyed identified as financially vulnerable in April 2020 compared with 15 per cent in November last year. The poll also found that 13 per cent of those asked in April felt confident in their financial future compared with 20 per cent in November 2019.

If you have taken advantage of the payment deferrals offered by many lenders, you need to have a clear plan for when those deferral periods come to an end and you need to resume making payments.

Gio Bazile, a district vice-president at TD Bank, says some borrowers may start to struggle once the deferrals come to an end if their income hasn’t picked back up again.

“Part of what is going to be really critical is understanding what your future cash flow is going to look like and how do you work with your financial adviser with an impending financial hardship, how do you best balance your wants and needs,” he said.

Bazile says everyone is going to face their own situation, but it’s key to have a candid conversation with your partner or family to understand where you are financially.

“If your cash flow is low or if you are kind of over-leveraged from a debt perspective, then that’s probably a time to actually spend some time with your financial adviser,” he said.

“If you’re looking at your savings account and realizing, wait a minute, I may not be able to get through this next two, three months and beyond, that’s probably another really big trigger.”

Craig Wong, The Canadian Press

Like us on Facebook and follow us on Twitter.

Want to support local journalism? Make a donation here.

Finances

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A man wearing a face-mask walks past protestors at a rally against COVID-19 public health measures in Creston on Nov. 28. Photo: Aaron Hemens
Editorial: A Divisive Demonstration

“Protesting public health measures isn’t going to solve anything. In fact, that’s exactly why we’re still in this pandemic. We are stuck in this pandemic because we refuse to work together to pull ourselves out of it.”

A laboratory technician holds a dose of a COVID-19 novel coronavirus vaccine candidate that’s ready for trial on monkeys at the National Primate Research Center of Thailand. (Mladen Antonov - AFP)
Interior Health reports 66 new COVID-19 infections

570 cases are active; 18 in hospital

A woman wearing a face mask to curb the spread of COVID-19 uses walking sticks while walking up a hill, in New Westminster, B.C., on Sunday, November 29, 2020. THE CANADIAN PRESS/Darryl Dyck
Interior Health reports 83 more COVID-19 infections overnight

46 cases are now associated with a COVID-19 community cluster in Revelstoke

Slocan Valley communities struggling with the need for high-speed internet should consider Kaslo’s model, according to the Kaslo infoNet Society. Photo: Black Press
Follow Kaslo’s lead for fibre service, says proponent

Tim Ryan of Kaslo infoNet Society says bringing high-speed internet to rural homes is possible

Provincial health officer Dr. Bonnie Henry updates B.C.’s coronavirus situation at the legislature, Nov. 30, 2020. (B.C. government)
Hockey team brought COVID-19 back from Alberta, B.C. doctor says

Dr. Bonnie Henry pleads for out-of-province travel to stop

B.C. Premier John Horgan on a conference call with religious leaders from his B.C. legislature office, Nov. 18, 2020, informing them in-person church services are off until further notice. (B.C. government)
B.C. tourism relief coming soon, Premier John Horgan says

Industry leaders to report on their urgent needs next week

An RCMP cruiser looks on as a military search and rescue helicopter winds down near Bridesville, B.C. Tuesday, Dec. 1. Photo courtesy of RCMP Cpl. Jesse O’Donaghey
B.C. Mountie, suspect airlifted by Canadian Armed Forces from ravine after foot chase

Military aircraft were dispatched from Comox, B.C., say RCMP

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

An 18-year old male southern resident killer whale, J34, is stranded near Sechelt in 2016. A postmortem examination suggests he died from trauma consistent with a vessel strike. (Photo supplied by Paul Cottrell, Fisheries and Oceans Canada)
“We can do better” — humans the leading cause of orca deaths: study

B.C. research reveals multitude of human and environmental threats affecting killer whales

A logo for Netflix on a remote control is seen in Portland, Ore.,Aug. 13, 2020. Experts in taxation and media say a plan announced Monday by the government will ultimately add to the cost of digital services and goods sold by foreign companies. THE CANADIAN PRESS/AP-Jenny Kane
‘Netflix tax’ for digital media likely to raise prices for consumers, experts say

The government says Canadian companies already collect those taxes when they make digital sales

BIG SALMON ranch in Washington State. (Center for Whale Research handout)
Non-profit buys Chinook ranch in hopes of increasing feed for southern resident killer whales

The ranch, which borders both sides of Washington State’s Elwha River, is a hotspot for chinook salmon

Most Read