Keep the Coronavirus away from your retirement

As concerns about the Coronavirus (COVID-19) remain high, so does the uncertainty about the full impact on our healthcare systems, the global workforce and financial markets. In fact, our research partners believe the global economy could be in recession by late spring if the US has a slowdown like China’s. That’s why, if you’re planning to retire—or about to—it’s critical to manage your portfolio accordingly. Find out how in our recent edition of Modern Retirement Monthly: Portfolio management and black swans.                                                                             

First, our research partners recommend maintaining perspective. Remember that while you can’t control the markets, you can control how you invest in them. Don’t panic, and if you have a “fire drill” plan for responding to market declines, you may want to consider implementing it. Common actions might include rebalancing, putting “dry powder” cash to work and tax loss harvesting when possible.

Second, we can help you organize your financial life into three key strategies: Liquidity—to help provide cash flow for short-term expenses, Longevity—for longer-term needs and Legacy—for needs that go beyond your own. This framework can give you the confidence to pursue what matters most—no matter what the markets are doing. In fact, it’s during sell-offs like these that having 2-5 years of expenses saved in a Liquidity strategy may make sense.

Third, keep your eye on the big picture. 2020 will bring challenges, but there will also be opportunities. For example, the current decline in interest rates presents a future challenge for investment portfolios, but also an opportunity for those who are considering refinancing mortgages and other debt. With a well-built portfolio and financial plan, you’ll feel confident about facing market volatility—as well as know when to act and when not to.

Research from CIO GWM is provided by UBS Financial Services Inc. UBS Financial Services Incorporated of Puerto Rico is a subsidiary of UBS Financial Services Inc. In Canada, research from CIO GWM is provided by UBS Investment Management Canada Inc.

The views expressed in the research provided do not constitute a personal recommendation or take into account the particular investment objectives, investment strategies, financial situation and needs of any specific individuals. They are based on numerous assumptions. Different assumptions could result in materially different results. We recommend that you obtain financial and/or tax advice as to the implications (including tax) prior to investing.

UBS Financial Services Inc., its affiliates and its employees are not in the business of providing tax or legal advice. Clients should seek advice based on their particular circumstances from an independent tax or legal advisor.

Timeframes may vary. Strategies are subject to individual client goals, objectives and suitability. This approach is not a promise or guarantee that wealth, or any financial results, can or will be achieved.