Wealth Management in Troubled Times

Wealth Management in Troubled Times

We are facing unique challenges today because of the Covid-19 virus and now the demonstrations currently rocking our cities.

These challenges can make investing decisions harder; however, without a doubt, the stock market has continued to meet these challenges with optimism as it has bounced significantly from its lows earlier this year.

At this time, we feel the stock market is an excellent way to invest your money for the short or the long term.

Wealth management can be tricky and can be even more so now that our world appears to be in a lot of turmoil. The key is always going to be to diversify your investments.

Where Should Your Investments Be?

At this current time, we feel that the stock market is making a good comeback, and it is without a doubt making many investors a lot of money.

There are some concerns about if the stock market will continue to boom while the economy remains recessed. We feel that those concerns are valid; however, unless another significant event happens, we remain optimistic about the current growth in the economy from its lows in March and April. 

Should I Care About Other Investments?

We feel that a diversified portfolio is the best way to go. We recommend that you hedge your investments against the stock market.

This can include holding onto cash and investment in high-yield savings accounts. While the highest high yield savings accounts return now is around 3%, that is still money into your pocket if you are okay with a small return on your investments.

Investment in Government Bonds and other Bonds.

Investing in short-term and long-term bonds to be great investments. The ROI on such bonds are usually going to be good. However, keep in mind that most bonds are not FDIC- insured, so you risk losing money if the company is downgraded or goes out of business. However, this rarely happens.

While short-term cooperate bonds do come with added risk, the rewards can also be great as well.

Dividend Stock Funds

Buying Dividends can be risky, but can also come with tremendous rewards. The key when picking dividends would be sure that the company has a long history of producing great dividends for their investors. The dividends are typically paid out every quarter.

Picking dividends are not for the beginning investor; however, if you choose a wealth management team, they can help you pick which dividends will be good for the long-term.

Even companies with great reputations can have their dividends cut in an economic crisis, so especially while we are still in the COVID-19 epidemic, it will be useful to choose wisely when investing in a dividend stock.   

Bottom Line

Investing can be a great way to increase your wealth over a long period of time. If you have considerable assets or are just starting out, then a wealth management advisor can help you make the best decisions over the long term of how to make your money work best for you.

If you are looking for a wealth management advisor in the Tulsa, Oklahoma area please feel free to give us a call at (918) 727-7100.