By Parker King, CBSN Denver Producer
DENVER (CBS4) – Coronavirus is impacting everyone right now. Many people are worried about their finances, especially as the stock market takes a hit.READ MORE: Van Stolen From Mesa County Found In Los Angeles
“We are seeing extreme volatility in markets,” said Alex Leonida, the portfolio manager at Capital Financial Group in Colorado. “We are a consumption driven economy. 70% of our Gross Domestic Product comes from you and me going out and shopping.”
When it comes to investing right now, one of the most important things is being diversified.
“A lot of people just thought they could buy an index fund and be adequately diversified. Unfortunately when you buy some of the largest index funds, you are really only buying exposure to about 10 stocks, so that’s a bit of a misnomer,” explained Leonida.
There are several steps people can take now to help manage personal finances during this time of uncertainty. If a person is nearing retirement, they should look into the possibility of working a little bit longer.
“Giving your portfolio time to recover matters,” Leonida explained, “markets can go down quickly, but it takes about two years on average for us to recover, so time is essential.”READ MORE: Charges Dropped In Grand County Bar Fight After Detectives Review Video
Another step people can take is looking at your budget. Leonida said “a lot of people don’t know the difference between a need and a want. You can save a lot of money on the margin every month if you can determine the difference between those two.”
If neither of those are an option, he said people could take a look at their assets, such as refinancing a home or looking at a home equity line of credit.
People can also try to refinance to a zero interest credit card. Leonida said “that can give you that flexibility and relieve some cash flow stress every month.”
“I think the most important thing, from our research at least, is there is going to be continued volatility, and people should be prudent and mindful with their expenses on a day to day basis,” Leonida suggested.
If you want more information or would like to contact Alex Leonida and Capital Financial Group, you can visit their website, CFGfinancialplanning.com or send an email to info@CFGfinancialplanning.com.MORE NEWS: A-Basin Gets The Go-Ahead For Improvements That Include Lenawee Chairlift Replacement, New Restaurant Space
Any opinions are those of Alexander Leonida and not necessarily those of RFJS or Raymond James. Investment Advisory Services offered through Capital Financial Group, Inc. Capital Financial Group, Inc. is not a registered broker/dealer and is independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc. member FINRA/SIPC.