(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

COVID-19. (Image courtesy CDC)
Interior Health reports 18 COVID-19 cases, highest daily count since July

The total of COVID-19 cases in the region is now at 662

A Kelowna clinic decided to immunize their patients in a drive-thru flu clinic earlier this month. (Twila Amato - Black Press Media)
Interior Health anticipates increase in flu vaccinations this season

Some 300,000 doses of flu vaccine ready for distribution across Southern Interior

Voters in Saanich North and the Islands, here lining up outside Sidney’s Mary Winspear Centre on the first day of advanced voting, are among the provincial leaders in getting in their votes early, with some 20 per cent (10,174) of eligible voters have already cast their ballots. (Wolf Depner/News Staff)
It’s Election Day in B.C.: Here’s what you need to know to vote

B.C.’s snap election has already broken records for advance voter turnout, mail-in ballots

The Local Store is currently open for online harvest orders. (Photo Contributed)
Local Store launches online harvest orders

The orders must be placed prior to Oct. 27 for pick-up or delivery on Oct 30

Top row, left to right: Tom Shypitka, BC Liberals; Wayne Stetski, BC NDP; Kerri Wall; BC Green Part
Kootenay East candidates messages

We offered each candidate in Kootenay East space to hold forth on issues important to them and to voters.

B.C. provincial health officer Dr. Bonnie Henry gives a daily briefing on COVID-19 cases at an almost empty B.C. Legislature press theatre in Victoria, B.C., on March 25, 2020. (Don Craig/B.C. government)
B.C. sees 223 new COVID-19 cases, now 2,009 active

Two new care home outbreaks in Surrey, Burnaby

100 Mile Conservation officer Joel Kline gingerly holds an injured but very much alive bald eagle after extracting him from a motorist’s minivan. (Photo submitted)
B.C. driver thought he retrieved a dead bald eagle – until it came to life in his backseat

The driver believed the bird to be dead and not unconscious as it turned out to be

Chastity Davis-Alphonse took the time to vote on Oct. 21. B.C’s general Election Day is Saturday, Oct. 24. (Chastity Davis-Alphonse Facebook photo)
B.C. reconciliation advocate encourages Indigenous women to vote in provincial election

Through the power of voice and education Chastity Davis-Alphonse is hopeful for change

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

White Rock RCMP Staff Sgt. Kale Pauls has released a report on mental health and policing in the city. (File photos)
White Rock’s top cop wants to bill local health authority for lengthy mental-health calls

‘Suggestion’ included in nine-page review calling for ‘robust’ support for healthcare-led response

A Le Chateau retail store is shown in Montreal on Wednesday July 13, 2016. Le Chateau Inc. says it is seeking court protection from creditors under the Companies’ Creditors Arrangement Act to allow it to liquidate its assets and wind down its operations.THE CANADIAN PRESS/Ryan Remiorz
Clothing retailer Le Chateau plans to close its doors, files for CCAA protection

Le Chateau said it intends to remain fully operational as it liquidates its 123 stores

Green party Leader Sonia Furstenau arrives to announce her party’s election platform in New Westminster, B.C., on October 14, 2020. THE CANADIAN PRESS/Jonathan Hayward
B.C. Green party says it’s raised nearly $835,000 in 38 days

NDP Leader John Horgan is holding his final virtual campaign event

U.S. border officers at the Peace Arch crossing arrested two men on California warrants this week. (File photo)
Ottawa predicts system delays, backlogs unless court extends life of refugee pact

Canada and the United States recognize each other as safe places to seek protection

Most Read