We’re experiencing a period of upheaval in the world today, which has also had an impact on the economy and markets. Given the spike in volatility and uncertainty we’re seeing in the broader economy, it may be time to step back and carefully review your financial life.

Take some time to assess where you stand and whether it may be appropriate to make any adjustments in your strategy. Here are four key questions to ask about your current financial circumstances.

#1 – Do you have enough cash to meet short-term needs?

A healthy cash reserve is important in times like these. A general rule of thumb is to have enough cash on hand (held in readily accessible accounts) to meet three to six months’ worth of expenses. But given today’s economic uncertainties, it may make sense to set aside up to nine months’ worth of cash.

#2 ­– Are you comfortable with the level of risk in your portfolio?

Investment markets have been volatile since the start of 2020 and may continue to be for the coming months and maybe years. Unsettled markets can be a real test of whether you are comfortable with your investment strategy or if the level of risk in your portfolio is keeping you up at night. Given the disruption that’s been occurring, a portfolio review makes sense.

#3 – Do you have a solid protection strategy in place?

This is an opportune time to make sure that you and your family are adequately insured. Health insurance is a good place to start, particularly if your work situation has changed in recent months. The importance of adequate life insurance is more evident in times like these to protect the wellbeing of your family. Look at other protection options too, such as disability income insurance and long-term care coverage to meet specialized care needs, especially as you grow older.

#4 – Is your financial plan still on track?

Finally, take a careful look at your overall financial plan. Are you still on track to achieve the key goals you initially established? Does your plan require adjustments based on circumstances that have changed? Given all of the events of recent months, this is the right time to review your plan to make sure you are still heading in the right direction.

Be sure to connect with your financial advisor to explore these questions in more detail and keep your financial life in order.


Andrew R. Petty, CRPC®, APMA®, CLTC®, is a Private Wealth Advisor with Nona Wealth Advisors, a private wealth advisory practice of Ameriprise Financial Services, Inc. He offers fee-based financial planning and asset management strategies and has been in practice for 19 years. To contact him, please call 407-249-4006, visit his website at https://www.ameripriseadvisors.com/team/nona-wealth-advisors or stopover at his office at 10917 Dylan Loren Circle, Suite A, Orlando, FL 32825.

Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.

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