4 Min Read
Five Takeaways From 2020
I think it’s fair to say that 2020 was a difficult and challenging year for all of us. But what a waste of a year it would be if we didn’t take away a few lessons from it. Here’s some of my takeaways from 2020.
We must continue to learn new things – quickly! Whether it was working or running a business, shopping, and even working out, many of us had to be resourceful and learned to do all of these things, and more, from home. As a result of this pandemic many business models have been questioned and we must continue to learn and leverage technology to remain effective. The dynamic of how and where we work has been changed forever.
It’s Important to Rebalance Our Portfolio’s – Many investors who didn’t rebalance their portfolios on a regular basis during the extended bull market also learned in March of 2020 that they had greater exposure to market volatility than they had intended. That’s because, over time, market swings can throw your target allocation out of alignment with your goals and risk tolerance. When that happens, you should rebalance by moving money from investments that take up a greater portion of your portfolio than desired into those that could use a boost—to get back to your target allocation. Reviewing your asset allocation and rebalancing is key!
Leverage Social Media The coronavirus destroyed many jobs in 2020, but it also created entrepreneurs. To adapt to the pandemic and the job loss it unleashed, more Americans are becoming their own bosses, setting up tiny businesses to work as traveling hair stylists, in-home personal trainers, boutique mask designers and chefs. I even have a client who started a mobile car detailing business! Social Media played a big part in marketing these new businesses and it also was a valuable tool for existing businesses. I began using Instagram myself in 2020 to share all the rapidly changing information about the various stimulus plans that came out last Spring and it was an extremely effective way to share information with my clients, and I was able to grow my business in the process.
Elections and the Stock Market – Every four years, politics and finance converge as Americans elect a president and investors try to figure out what the outcome means for their portfolios. You might feel strongly about one party or the other when it comes to your politics, but when it comes to your portfolio, it doesn’t matter much which party wins the White House. This was proven the day after election day in 2016 and again in 2020.
It’s Okay to Slow Down. Last year we were all forced to stay home, spend more time with our families, and taught to make use of what you already have. Instead of worrying about all the things yet to come and all the things I wish we had, this year I found myself learning to be content with what I have, spending more uninterrupted time with my family, and learning new things that would allow me to have more time for the things that matter most in my life.
There’s so much more to be said about 2020, but I believe the main takeaway is this. We didn’t go through 2020, we all grew from it.