SISIP can help relieve financial anxiety

Shannon Childs, 
Personal Financial Planner, SISIP Financial

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A weight lifted in 2021 when individual investors saw a rebound in their portfolios from the downturn of 2020.

With a sense of normal returning to the world, people started to feel at ease: unknowing that 2022 would bring strong headwinds. Seeing the largest rate hike in over 40 years caused even risk-adverse individuals to feel significant losses. It felt as if no one’s investments were safe. The volatility seen in 2022 is a good reminder of how quickly and drastically the market and funds can change.

With losses in our portfolio, we saw substantial cuts to transfer values upon early release. Cash values were nonexistent or reduced to minimal amounts. Many of us rely on these values as a buffer in the transition to the next stage, as a down payment for property or retirement, as other employers may not provide retirement plans. For some, postponing release can be an option; for others – current opportunities or challenges can force our hand. A stressful process now turns into a larger, more complicated decision. Knowing the pension options and benefits and understanding your immediate and future tax consequences will assist you in making informed decisions.

History has shown periods of volatility run short. If we hold strong, avoid looking at our statements and continue our contributions, we will benefit from the discounted prices and rebound that follows volatility patterns. Automatic contributions over time provide the benefit of dollar cost averaging, the practice of investing a fixed dollar amount at regular, pre-determined intervals. Since the amount is fixed, you buy fewer units when the prices are higher and more units when prices decrease. This provides the benefit of growth over time, a consistent plan and spreads funds over multiple pay periods.

As uncertainty in the markets continues and the cost of living rises, ensure you and your family are well-prepared for the future. A strong foundation begins with protective measures in place, such as insurance products, emergency savings and future forecasting expenses, strategies for reducing debt, and keeping a consistent budget. Being consistent through changing circumstances or uncertain markets will help you reach your goals.

Visit SISIP Financial to speak to one of our advisors. We are here to help you create budgets, develop a solid plan and stay on track to make your goals a reality. 

We are located in the CANEX Building and by phone at 250-363-3301.