How a Job Loss or Business Downturn Can Impact Your Retirement

With US debt levels at an all-time high, persistent inflation, and fluctuating interest rates, the economy is more unpredictable than ever. The upcoming presidential election could add another layer of uncertainty, potentially affecting economic policies and market stability. These factors and other world events could also impact job stability and business viability.

That’s why our Greenville financial advisors at Global View Investment Advisors work with our clients to help them understand how these factors might influence your retirement savings and investments so you can make informed decisions to safeguard your future.

As a business owner or executive in the Carolinas, you know that the only predictable quality of today’s economy is constant unpredictability. Great fortune – or disaster – can hit your business at any time.

But a job loss or business downturn doesn’t have to result in a retirement financial horror story, which our blog will cover. As wealth advisors in Greenville, South Carolina, we help successful business executives and owners develop and implement retirement plans to withstand economic uncertainty.

Why Financial Planning Matters

As Benjamin Franklin once said, “Failing to plan is planning to fail.” We couldn’t agree more with this timeless statement. 

Your greatest chance for success is planning, so your financial life is protected in virtually any situation. Small business owners and corporate executives face unique risks, making protective financial measures and comprehensive retirement planning more important.

Business Downturn or Job Loss

Layoffs and career pivots are an unfortunate component of the business world. The dynamic nature of the U.S. economy offers the potential for rapid economic growth – and rapid decline. So, how should you address a business downturn or job loss without impacting your overall financial well-being? 

1. Build and maintain an emergency fund to help you get through lean times without having to tap your retirement savings or other investments. This fund should cover housing, insurance, and other expenses for three to six months of your monthly income and should be in a liquid account so you can easily access it as needed. 
2. If you lost your job, talk with Greenville, your financial advisor, to develop a plan for moving forward, especially during a down period while you look for new employment.
    
3. While many unemployed people may turn to their retirement accounts to help make ends meet, this isn’t always the best move for many factors, including stiff penalties for early 401(k) withdrawals.

It’s important to discuss your situation with a financial planner in Greenville to determine your options and what works best for you and your family. This step can differentiate between difficult times and retirement financial horror stories.

Are you on track for the future you want? Schedule a free, no-strings-attached conversation with the Global View team to learn how we can help.

How to Withstand Stock Market Volatility

As the saying goes, the stock market “takes the stairs up, but the elevator down.” A steady period of healthy market gains can be quickly negated with a sharp decline. 

Most people have likely experienced a dip in their portfolio value at various points. However, investors with diversified portfolios are more likely to experience a smaller decrease in value. Knowing this and ensuring that your portfolio is diversified and matches your individual risk tolerance is paramount to weathering these market storms.

Risk tolerance is your capacity to endure potential market losses. It can vary by investor and change over time. There is no correct or incorrect level of risk tolerance. The most important factor is that you and your financial advisor agree regarding your risk preferences.

A portfolio that fits your risk tolerance can still grow and generate the returns or income you need. Your investments should always match your risk level, whether you consider yourself aggressive or conservative. Otherwise, you may prematurely sell your investments after a severe downturn before the market potentially recovers.

Today’s market comprises tens of thousands of different investments, each with unique characteristics and responses to market events. Consequently, these investments don’t move in tandem when the market fluctuates.

Nevertheless, investments in the same category tend to move similarly based on market conditions. This means that a well-designed portfolio with the right balance of stocks, bonds, commodities, alternative investments, and others is in a strong position to withstand volatile markets. This is the core of diversification.

Why Consider Global View Investment Advisors?

Global View Investment Advisors is about eliminating legal and financial conflicts of interest.

You might wonder how we can do that when we manage other people’s money. We can’t remove all conflicts, but we can be fully transparent with you.

Here’s our stance: We believe we can manage your investments better than you could alone. It’s that simple. But the choice is yours. Everything is out in the open:

• We are privately owned and operated, so we don’t have to respond to a corporate office or public shareholders. Our loyalty is solely to you.
• Our success depends on your success. We earn your trust, get referrals, and grow by doing what we say. Since you can end our relationship anytime, we must continuously earn your trust.
• We use the same strategies for our investments as we do for yours. We believe in what we recommend and put our money where our mouth is.

We understand your perspective because we’ve been there. Our advisors left big firms like Merrill Lynch to avoid the pressures of quarterly sales quotas and production targets. We wanted to be true advocates for our clients, providing real advice that helps you avoid common mistakes and reach your financial goals.

Ready to learn more about our wealth management services for business owners and executives? Connect with us.