How to Build Your Financial Life Up When the Markets Are Down

May 24, 2023 | Blogs/Articles

By Kevin Boutwell, CFP®, CIMA®

The after-effects of the pandemic and war in Ukraine are still being felt, with experts delivering an unenthusiastic economic outlook for the remainder of 2023. While that isn’t the kind of forecast investors want to hear, it doesn’t necessarily mean you can’t build upon your financial goals either.

When the markets are down, you can still put your best financial foot forward with these tips.

Stay Calm

When the marketplace is behaving erratically, you as an investor need to do the opposite. One of the worst mistakes we can make is to sell from a place of panic, especially if your portfolio is diversified. That’s because acting emotionally can turn a temporary loss into a permanent one. Instead, review patterns of the past, recenter your thinking, and make level-headed decisions.

History Lesson

History tends to repeat itself, and that’s certainly true when looking at the stock market. Major drops in the market are nothing new. In fact, it’s been rising and falling in a record-setting fashion for nearly a century. Whether it’s a depression, recession, or pandemic, the economy has shown its ability to bounce back from even the hardest of times.

Economic Crisis	Peak Market Decline (%)	Time it Took to Hit the Bottom (Months)	Time it Took to Fully Recover (Months)
Great Depression	-88.7%	34	302
Early 2000s Recession	-34.0%	43	47
Great Recession	-49.3%	16	47
Pandemic	-37.0%	1.5	7

Sources: Trefis Research and Data, Forbes, and Google Finance

Prep for the Future

Selling out of fear is just one way we sabotage ourselves. Another way is avoiding our problems altogether. It’s important to have a clear picture of where you stand amidst a market downturn. While it may be unpleasant to see yourself in the red, it’s critical to review your diversification. By investing across multiple asset classes, you help hedge against market volatility.

Market drops can be a great reminder that your strategy is either working or in need of an adjustment. By speaking with an advisor, you can review your portfolio, your targets, and your trusted course of action during turbulent times.

Help Others

One of the best ways to settle your own stress is to focus on others. When you see the struggles of friends or family, it can put your own in perspective; moreover, it can provide excellent motivation to get yourself in order. That way you can serve as a steady, stable source of help to those in need.

It’s a privilege for our firm to serve investors like you. We’re able to see the benefits impact you directly, and the lives of your loved ones. If you’re looking for guidance on how to care for members of your family, please reach out to us. Furthermore, we’re happy to provide a complimentary review of your family’s or friend’s investments and give recommendations.

Seek Support

Whether you’re just reviewing your current financial plan, or looking to make changes amidst the down market, you’re not alone. Feel confident in your financial future by letting us do the heavy lifting. With our wealth management services, you can spend more time doing what you love, knowing that your financial future is in good hands.

If you’re interested in learning more about how I serve my clients, I encourage you to contact me today for a no-obligation get-acquainted meeting. Reach out to me at 678.888.4952 or kevin.boutwell@veracitycapital.com to get started.

Part of the Atlanta Team: https://www.veracitycapital.com/atlanta-location/

About Kevin

Kevin Boutwell is a wealth advisor and partner at Veracity Capital. With almost a decade of experience in the financial industry, Kevin has acquired expertise in managing equity compensation and retirement planning. He focuses his services on corporate executives and people transitioning to retirement who have complicated compensation packages and resulting tax headaches. He believes that proper financial planning drives the best investment decisions, and his customized process and strategies help his clients achieve better outcomes. Kevin prioritizes building long-term relationships and offers the perfect mix of analysis, problem-solving, and a personal touch so his clients can focus on what’s important while knowing their finances are taken care of.

Kevin is a highly decorated veteran former U.S. Navy pilot. He got his start in the financial industry at Goldman Sachs and holds the CERTIFIED FINANCIAL PLANNER™ and Certified Investment Analyst® designations. Kevin earned his Bachelor of Science in Mechanical Engineering from the Georgia Institute of Technology and an MBA from Indiana University’s Kelley School of Business. Out of the office, you can find Kevin staying busy with his family, including his young triplet sons. When he has a spare moment, he enjoys staying active with CrossFit and an occasional round of golf. To learn more about Kevin, connect with him on LinkedIn.

Advisory services offered through Veracity Capital, LLC, a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

About Veracity

Veracity Capital is a full-service fiduciary financial firm providing personalized financial solutions to help clients transition into retirement, structure a robust savings plan, examine their insurance and estate planning needs, and much more. The experienced and dedicated Veracity wealth advisor team strives to guide their clients through life’s many milestones and, in the process, become lifelong financial partners. With a focus on the four pillars of financial planning, investment planning, tax planning, and risk management, the Veracity advisors tailor their services to add the most value to their clients and put their interests first. Veracity specializes in serving corporate executives, business owners, high-income earners, and those planning for retirement, helping them simplify their busy life, prioritize goals, and pursue the results they desire. To learn more about Veracity Capital, schedule an introductory consultation online.