{"id":15480,"date":"2021-07-26T08:42:20","date_gmt":"2021-07-26T06:42:20","guid":{"rendered":"https:\/\/calloffthesearch.com\/?p=15480"},"modified":"2021-07-26T08:42:22","modified_gmt":"2021-07-26T06:42:22","slug":"a-financial-plan-is-an-anchor-in-stormy-seas","status":"publish","type":"post","link":"https:\/\/calloffthesearch.com\/business\/a-financial-plan-is-an-anchor-in-stormy-seas\/","title":{"rendered":"A financial plan is an anchor in stormy seas"},"content":{"rendered":"\n

<\/a>Even more than usual, so many things happening in the world are out of our control \u2013 riots, Covid, lockdown, load-shedding, flooding and other extreme weather events, to mention a few. In this context, a financial plan anchors our expectations and responses even more than usual,\u201d says Andre Tuck, Senior Investment Consultant at 10X Investments.<\/p>\n\n\n\n

\u201cThe stock markets are out of anyone\u2019s control. They latch on to different themes and stories on a daily basis, turning this way and that,\u201d says Tuck. \u201cBut we can control how much we watch and worry about the minutiae of market movements.\u201d<\/p>\n\n\n\n

He adds that investors can control their vulnerability to stock market volatility to some degree by investing in well-diversified index funds, which \u201cwill give wide exposure to the market while limiting stock-specific risk\u201d.<\/p>\n\n\n\n

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Tuck says that even the most expert of experts don\u2019t know what is going to happen next. \u201cIs inflation a threat or not? Will the Fed raise interest rates sooner rather than later? Have we seen the peak growth rate in the economic recovery? Value or growth? Gold or crypto? Is the rand getting stronger or weaker? Local or offshore? Nobody knows.\u201c<\/p>\n\n\n\n

With so much uncertainty all around at us, at home and abroad, he adds, all we can do is control our own behaviour and how we respond to situations.<\/p>\n\n\n\n

On a personal or social level there is much we can do, says Tuck. We can do our bit to help those in need, we can maintain safe practices, we can adopt sensible habits that lower our personal risk, we can individually become environmentally conscious, and so on.\u201d<\/p>\n\n\n\n

He adds that people should be mindful to \u201ctry not to get overwhelmed by emotions and panic\u201d. One way to avoid panic is to stay informed about the issues, while being very selective about the sources of information we read, believe and share.<\/p>\n\n\n\n

Tuck adds that when it comes to our personal finances there is much we can control in the short as well as the longer-term.<\/p>\n\n\n\n