So...it's been a year - we see this ONE YEAR OF COVID-19 in the news and on social media. It's also been ONE YEAR since the bottom of the stock market dropped out - March 23, 2020.
On February 20, 2020 - the market (TSX) hit a high of $17,944 and by March 23 it had realized a sharp decline of 37.4% to $11,228.
Let's be honest - some people paniced.
The 'hype' in the media gave cause to serious concerns...
After all, it took until January of 2021 - for the TSX to return to previous values
What did PRIME TIME FINANCIAL recommend and do in 2020? An intentional decision was made to maintain holdings as the best course of action. And we shared it with you, our clients, via Blog and phone calls.
SOME took advantage of the "SALE" and made lump sum investments (purchases) into their TFSA & RRSP accounts.
Those investments provided a 20% return over the rest of 2020.
The LONG TERM PLAN remained (and still remains) the best solution. These plans invest into well-managed porfolios which DID NOT experience the severe decline & volitility of the TSX - while still providing excellent opportunities to improve the fund profile.
If you are one of our many clients who continued with monthly purchases for their RRSP and TFSA accounts - you also took great advantage to 'buy while the market was on SALE.' We've received notes and comments of gratitutde from those who realized significant gains because of their monthly PAC purchases for RRSP, RESP, RDSP, TFSA, and Non-Registered plans. These PACs remain a "Best Practice" and an excellent way to manage your monthly cash flow. Please remember, these PACs can be started, changed, or stopped at your convenience, while allowing you to take advantage of normal market flucuations.
It also accomplishes the following:
- builds up your long-term Retirement and Investments
- increases your NET WORTH
- helps you accomplish your financial goals.
With spring upon us, we look forward to budding trees, flowers, and spending time with family & friends - even if it is still "socially distanced" on the deck or patio! It's also a great time to look over your FINANCIAL PLAN - CLICK HERE to make an appointment!