Today, having different income sources has become crucial, as most have lost jobs or have faced pay-cuts because of the pandemic. Some have also seen a decline in income during the lockdown and are unsure of a recovery after the lockdowns.
Fremont, CA: The COVID-19 pandemic has diminished the investment portfolio of numerous investors. Wealth creation is also difficult to accomplish as their income has also be affected. A thorough reassessment of risk tolerance can help restart the creation of wealth slowly while simultaneously protecting the money.
Because of the economic slowdown and the disruption in investment markets, portfolios might face an imbalance. Carry out a portfolio rebalancing to align with the current risk appetite, goals, and returns capacity of different asset classes.
It is essential to recast the budget in a way to minimize low-priority or non-essential expenses to protect wealth from diminishing. Additionally, keep the money invested to overcome inflation in the future and aim on earning a higher real rate of return on the investment. Take necessary measures to create or expand the size of the emergency fund to meet with the requirements.
Today, having different sources of income has become crucial, as most have lost jobs or have faced pay-cuts because of the pandemic. Some have also seen a decline in income during the lockdown and are unsure of a recovery after the lockdowns. Thus, have a target for creating new income sources. Having various income channels will offer some liquidity and reduce dependency on contingency funds or avoid liquidation of important investments when the main source of income is disrupted and avoid getting into debt traps.
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