(The Canadian Press)

(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

The Comox Valley Sports Centre re-opened in the summer. Photo supplied
Comox Valley Sports Centre Commission chair commends staff efforts in challenging year

Comox Valley Sports Centre Commission chair Daniel Arbour delivered a year-end report… Continue reading

The Lamplighters wants to end its lease with the village. Photo by Mike Chouinard
Briefs: Cumberland agrees to end hall lease with Lamplighters

Council aims to add more daytime meetings in 2021 for seniors

A rendering of the proposed window covering and sign for the business planned for downtown Cumberland. Image, Village of Cumberland report
Cumberland approves location change for cannabis permit

Site next door to the one planned seen as more financially feasible

The DPAC is holding an online forum on Nov. 30 for candidates for the upcoming school district byelection. Screenshot DPAC poster
Online forum for Comox Valley school board byelection is Nov. 30

Six candidates have filed papers to fill the trustee position in Area C

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Brenda Schroeder thought she was reading it wrong when she won $100,000 from a Season’s Greetings Scratch & Win. (Courtesy BCLC)
New home on the agenda after scratch ticket win in Saanich

Victoria woman set to share her $100,000 Season’s Greetings lottery win

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

(Delta Police Department photo)
Cannabis edibles found in Halloween bag lead B.C. police to illegal lab

Delta police arrested a man and a woman while executing a warrant at a residential property Nov. 20

A woman being arrested at a Kelowna Value Village after refusing to wear a mask on Nov. 22.(@Jules50278750/Twitter)
VIDEO: Woman arrested for refusing to wear mask at Kelowna Value Village

RCMP claims the woman was uncooperative with officers, striking them a number of times and screaming

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, November 9, 2020. THE CANADIAN PRESS/Darryl Dyck
COVID-19: What do rising positivity rates mean for B.C.? It’s not entirely clear

Coronavirus cases are on the rise but the province has not unveiled clear thresholds for further measures

Most Read