How has the corona pandemic affected financial planning?

Introduction

For a lot of people, this pandemic has brought about panic and uncertainty. From looking at profitable investments and maximum returns, a lot of individuals and businesses are now focussed on stability. In some cases, the best-case scenario has become a non-negative outcome. With the global economy fast reaching a crisis, prudent financial planning under the expertise of an independent financial advisor has become critical.

Corrective measures needed

An important step at this time for people to safeguard their financial health is to defend their investments from the virus. At this time, the economy is struggling and several businesses are crumbling. This has impacted a lot of investments such as the whole of life plans, education plans, retirement plans, and general savings that were made prior to the pandemic. A reputed Insurance advisor in the UAE will be able to help balance your portfolio as well as make corrective adjustments to protect your Investments. In addition, your independent financial advisor will be able to guide you on the right solutions for this time.

Liquid and accessible funds

To ensure financial stability at this time for your loved ones, you need to ensure your funds are accessible. If all your investments are in long-term plans, it could make things difficult in the short-term. Further, converting some of these investments on your own could lead to severe losses. Consulting a financial planner online in the UAE could help modify these investments in the most profitable way. The financial advisor cost based on two categories, commissions, and fee-bases, but it’s evident that fee-bases advisors are likely to work in your best interest. A financial expert would be able to guide you on which investments to hold on to and which to liquidate for maximum returns.

Re-evaluation of expenditures

As the uncertainty continues, wise financial decisions on a day-to-day basis will become important. Cutting down unnecessary expenditures and paying off debts needs to be a priority. Over exceeding credit card limits can lead to a troubled future financially. Even though a lot of loans may receive time relaxations, it is advisable to come up with a payment plan to meet these deadlines timely. Often, other expenditures take precedence and this leads to a massive increase in liabilities for the future. A financial planner will be able to help you create a budget that supports your loved ones in the present while reducing future liability.

The importance of a Will

A lot of people still do not have a legal Will in the UAE. This can be highly problematic in case of any unfortunate incident due to the Sharia Law in the UAE. Without a Will, the family and dependents may not be able to claim any of your hard-earned money and investments. It is important to note that a Will is not indicative of poor health. At this time, the virus has infected millions of people worldwide and claimed over a thousand lives. In an uncertain future, the only financial certainty you can ensure for your loved ones is a legal Will. A financial planner will be able to help you draft the Will in the proper manner as required under the laws observed in the UAE.

An updated insurance policy

One important aspect that the virus has brought to the forefront is insurance. In case you already have an insurance plan, make sure that all your policies are updated. If not, this is a good time to consider taking a new plan for your health and life. These policies can help ensure the best treatment for you and your loved ones at a fraction of the cost and also protect your dependents in case of an unfortunate incident. An experienced independent financial planner in the UAE will be able to guide you towards the best policy for your needs at an affordable premium.

Conclusion

Times are difficult now but progress is being made. There will come a time when things settle down and go back to a new normal. At that time, the decisions you make today will determine your financial security. Taking active steps to safeguard your finances and secure your investments could lead to a secure and profitable future. On the other hand, losing sight of your financial goals at this time could lead to a huge increase in debt and liabilities for the future.

Timely consultation with a financial advisor now could help remap your entire financial earnings into a more profitable and secure setting.


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Dr Rafiya Mushtaq is a financial consultant dedicated to enriching the lives of individuals and families. In her advisory capacity, she is renowned for her proficiency in life insurance, investments and medical health insurance, to name a few.