While COVID-19 has disrupted much of the world economy, Lifecycle Financial is still providing advice to 100 Mile House area residents.
Apryl Case, a qualified associate financial planner, has lived in the 100 Mile area all her life has been helping people financially plan for the last six years. Case loves how, because all of her clients are different and have unique wants and needs, no day is the same at the office.
“I think everybody’s situation is unique, everyone wants something different from this, whether they’re saving for a house, retirement, estate planning, it’s literally something different every day,” Case said.
Since the pandemic hit, Case said there hasn’t been too much change in what her office is advising that people do during these times. She subscribes to a ‘buy and hold’ strategy and for the most part Lifestyle Financial has a more defensive policy with all of their financial advice. While they may not benefit as much from economic booms, their portfolios are better insulated against the inevitable bust side of the cycle.
“So when everything crumbled over the two week period in early March, yes most client’s portfolios fell but they didn’t fall nearly as far as the stock market did. That’s why we have that strategy in place,” Case said.
To achieve this relative stability, Case said they pick good solid funds to invest in with good track records and solid managers. Unlike with stocks, where you frequently buy and sell, mutual funds are something you buy and then hold onto for an indefinite amount of time. She also said that they recommend diversification to ensure you can’t lose your entire portfolio if one country’s economy falls.
Currently, Case is advising people to ride this current downturn out as if you sell now, you’ll be selling low. Even if it may look like your portfolio is taking a beating, historical precedent suggests that this downturn will be turned around in the future.
“We don’t recommend any changes at this time,” Case said. “Don’t panic, don’t be checking your portfolio every day, remember we’re in this for the long term.”
When it comes to taxes and claiming your Canada Emergency Response Benefit, Case said that, if you haven’t filed your taxes already, that the CERB will be taxed but not until the 2021 tax year. This will depend on each individual’s tax bracket and annual income when determining how much of it they’ll have to pay back.
Otherwise, Case said she sees no value in waiting to file your taxes unless you know you’ll be owing money and said money is tight within your household. If you’re going to get a refund, she’d advise against waiting as that can impact your GST and child benefit rebate.
Anyone looking for advice, client or otherwise, is welcome to call Lifecycle Finacial to talk with Case or anyone else available to talk. While they’ve broken up into shifts and are working reduced hours, Case said there should be someone in the office from 8 a.m. to late afternoon with contact info available on their website.