(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

Two dead in COVID-19 outbreak at Delta Hospital

Total of 10 patients and four staff in one unit have tested positive for COVID-19: Fraser Health

Virtual challenge to benefit Delta-based guide dogs charity

Funds raised to help BC Alberta Guide Dogs provide people with free guide dogs, autism and PTSD service dogs

White Rock writer in running for $6,000 accolade

Joseph Kakwinokanasum to learn Oct. 1 if his story, Ray Says, wins CBC Nonfiction Prize

PHOTOS: Shots fired in Cloverdale Thursday night

Police say nobody was hurt after shooting at 19000-block of 64 Avenue

Surrey Fire Service responds to fire at Whalley house

Crews closed 132nd Street for a period

B.C.’s top doctor thanks supporters after revealing threats over COVID-19 measures

Dr. Bonnie Henry says COVID-19 has caused some people to lash out in anger and frustration out of fear

VIDEO: Mounties looking to catch Chilliwack bike-riding teen groper

Man caught on video slapping the backside of girl near CSS riding a bicycle

Money laundering inquiry delayed over of B.C. election: commissioner

Austin Cullen says the hearings will start again on Oct. 26

2 British Columbians arrested, 3 at large in massive Alberta drug bust

Eight people are facing 33 charges in what police have dubbed Project Incumbent

Lumber hitting record high prices due to low supply and high demand

B.C.’s forest industry hasn’t been able to keep pace with the COVID-19 building boom

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

‘Monkey Beach’ supernatural film adaptation premiers at VIFF

Based on Kitamaat author Eden Robinson’s debut, mystical novel

PHOTOS: 2nd calf in a month confirmed among Southern Resident killer whale pod

Center for Whale Research said they will eagerly await to observe the calf to evaluate its health

B.C. VOTES 2020: Speculation tax misses speculators, B.C. Liberals say

Andrew Wilkinson, John Horgan clash over housing costs, solutions

Most Read