5 Strategies To Help Grow Your Wealth During The 2020 Financial Crisis

The world is in crisis right now, and for many of us, our response has been to go into protective mode. And while it’s incredibly important for us to follow government guidelines to stay home and keep ourselves and those around us healthy, it’s also important for us to use this time wisely and make decisions that can help us weather this storm.

So, while there’s not much we can do about our volatile markets and rising unemployment numbers, we can be proactive about our finances. Let’s look at 5 strategies you can use today to leverage the 2020 financial crisis and help grow your wealth.

1. Reevaluate And Reposition

A financial crisis can be the perfect time to go back to the drawing board and reevaluate your current financial situation. Is your emergency fund too small? Is there more risk in your portfolio than you’re comfortable with? Do you have more debt than you should?

Take a hard look at your finances to identify ways you could save money—either now or in the long run. For example, now could be an ideal time to:

  • Refinance your mortgage to a lower rate. Interest rates have fallen back to a historic low. As of April 29, 2020, the average APR for a 30-year fixed-rate mortgage is 3.361%. (1) If you’re looking to cut your mortgage payment, call your lender and see if you qualify for refinancing. Just be sure to factor in closing costs, which could eat into your savings.
  • Take out a life insurance policy (or increase your current coverage). If you’re like most people, the coronavirus pandemic has you thinking a lot about life insurance. The good news is that it’s not too late to apply and lock in a low rate if you’re healthy. Life insurance rates are largely tied to interest rates and the market, so buying now while rates are low could be a good way to help secure your family’s financial future.
  • (2)

2. Stay The Investment Course

Investing seems like the last thing you want to do right now. We get it. But if you really want to grow your wealth, you should consider investing because now could be the perfect time to buy some stocks at a steep discount.

If we look back at the 2008 financial crisis, we see that stocks fell by more than 50%. (3) But the market began to bounce back in 2009. Those who persevered likely saw their portfolios regain their original value in two years (4) and reach all-time highs in 2019.

We’ve had 12 bear markets since World War II. (5) And guess what? We recovered from every single one of them. We can’t say when stocks will stop falling. But we do know that if you’re patient and keep on investing, the market should recover again and you will not have missed the benefits of the recovery.

3. Limit Your Losses

But what if you’re retiring soon and this financial crisis has made you realize you’re too heavily invested in stocks? In this case, it could be a smart move to set up a stop-loss for your investments. A stop-loss sets a bottom price for your investments so that when the price drops to the threshold you’ve set, they’re automatically converted to cash.

Just make sure you keep in close contact with your financial advisor so you don’t miss the market recovery when it does happen. If you’re retiring soon and are stressed about the market falling, stopping the losses can be a great way to ease your worry.

4. Minimize Taxes

Growing your wealth doesn’t necessarily mean making more money. One of the most efficient ways to help maximize your savings is to minimize your tax burden. Fortunately, there are plenty of strategies you can use to help legally reduce your tax bill, like:

  • Contribute the maximum amount to your tax-advantaged retirement and HSA accounts.
  • Use deductions to reduce your taxable income and credits to reduce your tax bill.
  • Reevaluate your tax filing status to ensure you don’t face unnecessary penalties.
  • Use charitable donations to minimize the financial impacts of required minimum distributions (RMDs).

Be sure to visit with a qualified tax professional to discuss your tax planning opportunities.

5. Seek Help From A Financial Professional

If you’re not a financial professional, it can be stressful to figure out ways to help grow your wealth during the 2020 financial crisis. And considering all that’s going on in our world, you have enough to worry about. In times like these, consider connecting with a trusted financial advisor who can help you create a step-by-step plan for helping grow your wealth today.

Comprehensive Advisor is a financial advisory firm that’s dedicated to helping you weather any financial storm that comes your way. Whether you need help managing your portfolio, creating a financial plan, or minimizing taxes, we’re here to help. Schedule a no-obligation conversation by sending us an email at info@ComprehensiveAdvisor.com or calling our office at (760) 813-2125.

About Our Advisors

Brett Gottlieb is the founder of Comprehensive Advisor and a financial advisor with nearly two decades of industry experience. He graduated from California State University-Chico with two bachelor’s degrees in Business Administration and Economics. Brett is Life Insurance licensed in several states. He is passionate about guiding his clients on retirement income planning, helping each client pursue their specific retirement goals and defending the assets his clients have worked so hard to achieve. Brett is a California native and currently resides in San Elijo Hills with his beautiful wife and three children.

With a combined experience of over three decades in the financial services industry, our advisors hail from some of the largest independent broker/dealers and banking institutions in the country. They have dedicated their professional careers to creating personalized financial solutions for individuals and families who seek successful retirement planning and currently offer investment advisory services through AE Wealth Management, LLC. Our advisors take a common-sense approach to the planning process and work with clients to create a retirement road map to help ensure their assets are protected and they receive the income needed to enjoy their future. Based in Carlsbad, California, they work with clients throughout San Diego County and beyond. Learn more by connecting with Brett on LinkedIn or email them at info@ComprehensiveAdvisor.com.

Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM). AEWM and Comprehensive Advisor are not affiliated companies. C.A. Financial & Insurance Services, CA Ins. Lic. #6000262. This material is intended to provide general information and is believed to be reliable, but accuracy and completeness cannot be guaranteed. Neither the firm nor its representatives may give tax or legal advice. Investing involves risk, including the potential loss of principal. Any references to protection benefits, safety, security, lifetime income, etc. generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. 623147


(1) https://www.nerdwallet.com/blog/mortgages/current-interest-rates/
(2) https://www.businessinsider.com/personal-finance/life-insurance-during-global-health-crisis
(3) https://www.thebalance.com/stock-market-crash-of-2008-3305535
(4) https://money.cnn.com/2015/02/26/investing/stock-market-crash-bubble-investing/index.html
(5) https://www.cnbc.com/2020/02/27/heres-how-long-stock-market-corrections-last-and-how-bad-they-can-get.html


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