This week’s topic is the coronavirus and its impact on the economy, the stock market, and your portfolio. 

Yesterday, I answered a very important question - should you sell your stock market investments because of the coronavirus? 

Today, I want to give you a guiding principle to help you answer that question and others like it. So when the next crisis du jour occurs, you’ll know how to react and what to do. 

The principle is easier said than done, and it flies in the face of our natural tendencies to protect ourselves in times of trouble and crisis, but it’s a principle that will greatly enhance your ability to make good financial decisions, and if you’re capable of implementing it in your life across the board, it will no doubt bring more peace and calm into your life. 

Here’s the principle: Focus on what you can control and not on what you can’t. 

Focus on what you can control and stop worrying about what you can’t control. Do you have any control over the coronavirus outbreak and the spread of the disease? No. But you do have control over how you prepare for an outbreak. You can stock up on emergency food supplies and buy a medical face mask for everyone in your family. You can avoid travel to high-risk places and wash your hands. 

Do you have any control over the drop in the stock market and the drop in value of your investments? No. But you do have control over your reaction and what you do about it. You do have control over making sure you have enough in savings so you don’t have to dip into your portfolio if you need some cash. You do have control over how you invested in your portfolio leading up to the downturn. I talk often about the importance of a mix or stocks and bonds that is aligned with your age, income needs, and proximity to retirement. If you are disciplined and focusing on taking the right actions on the things you can control, a drop in your portfolio or a recession won’t derail your plans, so there isn’t too much you should worry about anyways. If you’re healthy, you can control whether or not you work another year or work part time in retirement to allow your portfolio to recover if you retire into the teeth of a recession. 

So focus on what you can control. Just like you can’t control your mother-in-law’s passive aggressive comments, but you can control your reaction to her comments, you can’t control world events and their impact on your investment portfolio, but you can control your reaction to them. 

That’s it for today. Thanks for listening. My name is Ashley Micciche and this is the One Minute Retirement Tip. 

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