Smart Cents

401k plans during COVID 19-- reallocating to avoid volatility and/or short term loses because of sectors impacted by COVID is a personal decision. Consult your financial advisor for one on one advice. I am not comfortable offering that kind of advice to the masses....everyone's goals and risk tolerances are different. I am comfortable, however, offering the following...

If you are still employed and cash flow is 'okay' during these times -- please continue contributing to your retirement plan. At a minimum dollar cost averaging will help you 'buy more low' as the markets experience ongoing volatility.

If you are concerned about your current investments and/or investment mix --- use some common sense. Go to your 401k online statement-- take a look at the holdings you have invested in and use your own common sense.

During this economic pullback (dramatic understatement) what companies are going to suffer and what companies will benefit.

Benefit--- Amazon, Walmart, Kroger, PPE providers, how about the folks that make toilet paper...!! Buffett has touted common sense and investing in things that you understand-- there is no need for a Wall Street analyst to tell you some of the sectors that will benefit from COVID.

Suffer --- well that is pretty straight forward as well....Marriott (major hotel chains, where majority of properties are corporate run/owned), airlines, hospitality/recreation -- keep in mind that the movie makers tend to be large diversified companies beyond entertainment.

Take a look at the prospectus or google current holdings of your 401k investments -- you might reallocate based on what you find as the largest holdings within the investments.

Please do not turn into a market timer, but if you are close to retirement and a 20% drop would impact your assets --- at a minimum consider your current mix and strategy.

If your advisor does not currently help with your 401k mix -- ask them to. They do not get paid to do so -- but the vast majority are happy to help.

At a minimum do not stop contributing...if possible increase the amount going into your 401k.

Will begin to add content to this page....advice from 17 years working as a financial advisor...things public still struggles with around finance....for free.

If you are a business owner that needs capital-- short term or long term -- let's chat.