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Ukraine-Russian War: How Can You Protect Your Wealth from Market Volatility?

Mar 11, 2022 2:08:15 PM The MacMillan Estate Planning Team Wealth Planning, investments, Investment Trust

Our hearts go out to the people of Ukraine and those with loved ones who are now in danger. This is something no family or individual should ever have to go through. We hope and pray for a swift end to this humanitarian crisis.

Significant events, such as the Ukraine-Russian War, often create a rush to take-action, and an urgent drive to ‘do something.’ However, reacting impulsively to daily market movements is almost always counterproductive. What matters most is whether you are on track to meet your own long-term goals detailed in your estate plan. Unless you need your money next week, what happens on any day is inconsequential. It is the long-term returns that count.

With that in mind, here are our top tips to help put the current market volatility into perspective:

  1. Avoid assumptions

Markets are unpredictable and the experts don’t know everything. Economists on the TV will speculate every night about what might happen. No one knows how the markets will react. It is a waste of time to speculate.

  1. Remember that people are still buying

Quitting the market when prices are falling locks in your losses and is like running away from a sale. Although media headlines state “investors are dumping stocks”, someone is buying them too. They are long-term investors, like Warren Buffet.

  1. Consider protecting your wealth with Investment Trusts

By holding investments in the traditional way via the Bank Act, you are exposed to all the ups and downs of the market. The Insurance Act offers a safer option where people have more protection and predictability – two qualities that are worth their weight in gold, especially now. In particular, Investment Trusts that are governed by the Insurance Act are principal guaranteed, thus withstanding short to medium term falls, while benefiting from market upturns when you can lock in new values.

  1. Discipline is rewarded

Through discipline, guaranteeing a portion of your investments via the Insurance Act, keeping focused on progress to your goals and accepting how markets work, the ride can be bearable. At some point, values are regained. And those who did not act on their emotions are rewarded.

In conclusion

We hope these tips provide you with a timely reminder that principal guaranteed long-term investment strategies combined with not impulsively reacting to daily market movements, will provide you with the greatest chance of achieving your goals, and safeguarding your significance.

If you would like to discuss your personal situation, please call MacMillan Estate Planning’s office at 1-833-266-6464 to schedule a complimentary consultation with a qualified estate planner, or register for our upcoming estate planning webinar at www.macmillanestate.com/seminars.

At MacMillan Estate Planning, our team of professional trust and estate practitioners, chartered accountants, financial planners, and legal professionals look forward to assisting you with the design of your estate plan and will ensure you build, protect, and enjoy your wealth. The information provided is general and may not be suited to your objectives or sufficient to ensure the protection of you and your family. You should not act on this information without providing MacMillan Estate Planning with the opportunity to ensure that it is suitable for your unique situation.

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