Are you worried about the state of the world? You’re not alone. Many people have concerns about current events and the impact on their security. From political division to inflation, it’s easy to feel afraid of what’s to come.
But as we start a new year, it is good to remember that challenges have come before. We may feel like “this time is different,” and in some senses, it is. Every challenge has its unique set of causes. Still, as a nation, we surmounted hard times even when we thought we couldn’t.
This article will explore how a historical perspective and a long-term financial plan can promote resiliency even in trying times.
Turning to History
From the beginning, our ancestors experienced trials, but we don’t have to go back to early history to find examples. America’s experience over the past century offers numerous instances.
One of our toughest moments was the Great Depression. At its peak, 25% of America’s workforce was unemployed, GDP fell 30%, and people woke up every day worried about how they’d feed their families. Despite this crucible, the country recovered.
The 9/11 attacks were another painful experience. The attacks left many of us fearful and uncertain, but also brought the country together. We forgot about our political and other differences. Instead, we united as a country and recovered from the trauma together.
In the Great Recession of 2007-09, unemployment hit 10%, homes across the country foreclosed, and major stock indexes plummeted. The economy took time to recover but eventually entered its longest economic expansion period in American history.
The common factor in these examples is that we overcame and rebuilt. While history doesn’t predict the future, it can provide comfort that people just like us thought, “This time is different,” and persevered.
How Financial Planning Can Help Reduce Anxiety
It’s easy to feel anxious when talking heads everywhere predict recessions or when the stock market nosedives, taking our portfolio values with it. We wake up to news of inflation, spiking gas prices, and another world leader making threats.
As fiduciary financial advisors, we help clients address their anxiety about how events will impact them. Ultimately, the financial impact is about something much more important: People want to know they’ll be OK.
While we can’t predict the future, we wholeheartedly believe that having a long-term financial plan can help ease anxiety. A plan can provide a sense of stability and comfort when times are unpredictable.
When creating your long-term plan, you’ll want to consider factors like income, expenses, investments, and retirement horizon. Just as importantly, you’ll want to factor in your goals, such as retirement or your grandchildren’s college tuition.
If you’re unsure how all of this should come together, you might consider talking with a financial advisor. A fee-only, fiduciary advisor can help increase your comfort level because you’ll know they aren’t receiving commissions for their recommendations. Their advice must be in your best interest.
Final Thoughts
It’s natural to feel anxious when times seem trying. Circumstances may appear different from what came before, but we can still find resilience by taking a historical perspective. If people like us overcame hardship, so can we.
Meanwhile, we can focus on what is controllable, and that includes the creation and maintenance of a long-term plan for financial wellness. Having a financial structure in place can help protect what we’ve built so we can move forward more confidently.
Schedule a complimentary consultation with one of our fee-only financial planners to discuss your personal situation.
This material was generated using artificial intelligence (ChatGPT) and edited by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.