Amid Coronavirus Pandemic, Financial Planner Says Now's The Time To Reevalute How Much Risk To Take On

By Parker King, CBSN Denver Producer

(CBS4) - Money is on everyone's minds right now as the coronavirus pandemic has caused financial stress for millions. A lot of people are now wondering "what's next?" as many states start easing stay-at-home orders.

"Global markets have changed a lot," explained Alex Leonida, a financial planner with Capital Financial Group in Colorado. "Our policy at our firm is your data should dictate your positioning and markets have a tendency to overshoot. The data is telling us the markets may be getting ahead of itself just a little bit."

Congress passed the historic CARES Act last month, giving taxpayers and businesses money, but many are concerned it's not enough.

"One thing we know for sure is that the stock markets really love stimulus," Leonida said, "but the bond markets, specifically treasuries and the commodity markets, are telling us the CARES Act wasn't nearly enough."

Leonida explained the stimulus checks going to families are only providing a month of liquidity, and the checks going to small businesses are only giving about two months of liquidity.

"This leads us to believe things are going to have to go back to normal very rapidly in order for this stimulus to be enough."

When it comes to investments, Leonida said their research still suggests the majority of 401(k) investors have not made a single change to their portfolio. "You can call it blind luck or just a hopeful mentality," Leonida said, but "hope is not an investment strategy, so we think people should view this as a gift."

Leonida said now is a good time to do a bit of research or talk to a professional to reevaluate how much risk you're willing to take, even if the stocks don't cooperate after the pandemic.

As several states, including Colorado, begin reopening, Leonida said there are three steps you can take now to help reduce financial stress during this time of uncertainty.

"First and foremost, it's keeping your budget in check," Leonida said. "I think people are antsy, so they want to get out and spend money."

However, he said it's important to keep to your budget in case of another shutdown.

He also said it's important to keep cash on hand during periods of uncertainty.

Lastly, Leonida said it's important to diversify your portfolio. "It's not about hitting home runs when the markets are going up. It's about staying in the game until the end."

If you want more information or would like to contact Alex Leonida and Capital Financial Group, you can visit their website, www.CFGfinancialplanning.com or send an email to info@CFGfinancialplanning.com.

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.