Did Your Advisor Help You During the COVID Crisis?

When the coronavirus began to appear on the global landscape, the effects were not only physical, but economic as well. As economies shut down to stem the spread of the virus, many suffered people from job losses and financial distress.  However, one bright spot among the dark clouds was that clients of wealth managers seemed to fare better on the investment front. While the virus originated in China before it started to affect the United States, markets quickly reacted in mid-February. Wealth managers with a defined investment and planning strategy recognized the potentially devastating effects on the economy and markets, and were able to take actions before the full market impact was felt in in late March.

During the first period of the pandemic, Forbes reported that that individuals who were served by proactive wealth managers were the only ones outperforming the market.

Amid the uncertainty, many Advisors counseled clients to cut expenses. Spending was cut by an estimated 20% during lockdowns. Budgets were altered due to travel, and holidays canceled, with lockdowns and national restrictions on unessential travel. Other areas of saving were due to the inability to dine out of the home and shop in person. Additionally, some business owners were able to save money due to federal support methods in place for their employees and payrolls.

Considered essential services by the federal government, wealth advisors had to adjust to the new reality as well. Some wealth management companies began hosting virtual events for their clients to educate, calm fears, and maintain relationships while assuring their clients they would make it through this new crisis. This has led to new introductions by  satisfied clients--allowing those firms to grow and add/retain employees to serve more members of the community.

As the markets continue to adapt to changes regarding the virus, so are the investment strategies of clients and their wealth managers.The uncertainty of the virus still presents customers needing reassurance of their accounts, especially those who are newer to the financial management industry. The best strategy to maintain their results so far is to continue to invest long-term and not react too quickly to market changes or worries. However, clients should continue to maintain vigilance in terms of expense management until we have reached the end of the viral pandemic and the economic future is more certain. The balance of saving and spending is a hard cycle to maintain during uncertain time periods, but managers assure their clients everything will work out (especially with the recent economic updates as well as the potential impact of vaccines on people’s opinions to get back to a normal life).

At HFG, we want to help ensure you can maintain a prospering lifestyle. The financial decisions you make now as a result of the unstable markets will inevitably impact the financial future of yourself and your loved ones.

The HFG team is committed to building meaningful relationships with clients that seek to span time and generations, helping clients live the lives they desire while also helping achieve their financial goals. With over 35 years’ experience working with clients from Exxon and similar companies, HFG’s seasoned staff is well-versed in providing invaluable guidance related to your 401k, pension benefits, insurance, supplemental pension,stock grants, etc.

If you or someone you care about is currently being impacted by the effects of the coronavirus pandemic on their employment outlook, please contact us directly at 832.585.0110 or service@hfgwm.com. We’re eager to listen and create a plan that’s suited to your specific needs.

About Us

HFG is an independent financial planning and wealth advisory firm serving individuals, families, and business owners in The Woodlands, Port Arthur, and the Beaumont area, as well as nationwide. We have extensive experience assisting individuals, executives and small businesses in the energy and related industries.

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