Daxiao Productions/Shutterstock
The author is not pictured.
The novel coronavirus is wreaking financial havoc worldwide, and while I'm currently trying to stay away from the headlines (there's only so much doom and gloom I can take), I'm also avoiding checking my investment accounts. This includes my mutual fund accounts and retirement accounts.
Why I'm not touching my investments
The main reason I'm not touching my money? I don't want to stress myself out further.
While I'm sure I've lost a fair bit of cash in the past week, I'm playing the long game. Most of my invested money, especially my retirement accounts, won't get cashed out for at least 20 years. I'm in my 20s, and likely won't retire for decades. Checking my retirement account will only make me panic.
As for my other investment money, I'm saving it for a big-ticket purchase like a wedding or a new home, meaning I don't need it right now and can leave it be until its value climbs again.
I know my investments can weather the storm
Viral outbreaks like the coronavirus create uncertainty, which leads investors to panic-sell their shares. But history shows that markets typically recover following an outbreak. If you're planning for the long term, you shouldn't be too concerned about what's happening right now.
Understanding the emotional side of investing helps, too. Many investors make financial decisions based on fear (or confidence). We are biased toward our emotions, so keeping a level head during market stress will typically yield better results. As many financial experts will say, you can never time the market, so it's best to ride out the lows and re-evaluate your portfolio once the market's more stable.
The same goes for understanding volatility. When deciding to invest, I made myself aware of the potential gamble of putting my money in the market. With great reward comes great risk, right? The stock market can be turbulent at times, but knowing that helps me ride the waves.
The last reason I'm leaving my investments alone for the time being is that I'm confident in my financial plan. I met with a financial adviser right after I graduated college and created a solid investment strategy that was diversified, meaning it had a mix of low- and high-risk investments. So when the market dips, my entire portfolio won't take such a steep dive.
Once the market evens out, I'll probably take a look at my accounts and re-evaluate my investment plan. But until then, I'm leaving things be.
Disclosure: This post is brought to you by the Personal Finance Insider team. We occasionally highlight financial products and services that can help you make smarter decisions with your money. We do not give investment advice or encourage you to adopt a certain investment strategy. What you decide to do with your money is up to you. If you take action based on one of our recommendations, we get a small share of the revenue from our commerce partners. This does not influence whether we feature a financial product or service. We operate independently from our advertising sales team.
Next Story
Saudi Arabia wants China to help fund its struggling $500 billion Neom megaproject. Investors may not be too excited.
I spent $2,000 for 7 nights in a 179-square-foot room on one of the world's largest cruise ships. Take a look inside my cabin.
One of the world's only 5-star airlines seems to be considering asking business-class passengers to bring their own cutlery
Experts warn of rising temperatures in Bengaluru as Phase 2 of Lok Sabha elections draws near
Axis Bank posts net profit of ₹7,129 cr in March quarter
7 Best tourist places to visit in Rishikesh in 2024
From underdog to Bill Gates-sponsored superfood: Have millets finally managed to make a comeback?
7 Things to do on your next trip to Rishikesh
