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What should you do about your investments during a crisis?

Setting money aside to purchase a new home? Like most people, you did not realize the impact Covid-19 would have on your investments and the economy! If the situation has you climbing the walls, it’s time for you to review your investor profile!

To find out more, here is some useful information taken from the La Capitale blog.

Reviewing your investor profile: why and when to do it?

In the wake of current uncertainty and market volatility (a global crisis, no less), reviewing your investor profile may be wise. Doing so will ensure that your assets are properly allocated based on your actual risk tolerance. After all, you’ll want to have funds at your disposal when you’re ready to buy your future home.

Specialists recommend that investors should be reviewing their profiles every two years. The same applies following major life events, such as:

  • Getting a new job
  • Having a new baby
  • Getting married or divorced
  • Making a new purchase or major investment

You go through changes during your life, and your tolerance to risk is one of them.  Understanding your actual risk tolerance to the current market volatility will enable you to choose the types of investments that are right for you.

How to review your investor profile?

A financial security advisor is your best ally. Contact one and he or she will have you fill out a questionnaire designed to determine your investor profile and help you interpret the results.

What is your financial security advisor’s role in the process?

Your financial security advisor is required to follow up regularly with you. He or she must also periodically review each client’s investor profile. Your financial security advisor must also understand your financial objectives, which of course, includes the purchase of your next home.

In addition to updating your investor profile, your financial security advisor must also clearly explain why he or she made certain investment choices based on your investor profile. An investment that works for one individual may not necessarily be appropriate for someone else.

Are you excited about a particular investment that’s the current talk of the stock market? Your financial security advisor’s role is to bring you back to your basic investment objectives—investing based on your risk tolerance, which changes over time.

What’s important is staying on course with your current investments...if that’s the right solution for you!

If you need support along the way to meet your financial objectives, La Capitale is there for you!

Learn more about its financial products and services, which will enable you to develop a strategy tailored to your financial objectives and investor profile.