Gerald Simons - Argus Group
On the economic front things are not very rosy. In the National Economic Report of Bermuda 2008 the Bermuda Ministry of Finance points out that, in the USA, our major trading partner: Gross Domestic Product might fall 2.5 per cent in 2009; The recession could last for as long as five quarters; Unemployment is rising (from 6.2 per cent in September to 7.2 per cent in December 2008), and some 2.6 million jobs were lost in the USA in 2008, the most in any year since World War II. A similar story is told in much of the developed world. Only a few emerging economies such as
Given all the doom and gloom what is a person to do? The Argus Group has been actively encouraging people in
In a similar fashion, now more than ever is the time to take care of one's financial health and well-being. People who have a financial plan, follow their budget and have clear investment goals will feel more comfortable even as markets decline. Those who have put something aside for that proverbial rainy day will feel more secure. If you do not have the time or skill to develop a financial plan, seek professional advice from an a
Further, to improve one's chances of retaining a job or getting a new one, one should invest in training and development. Yes, performance matters. Employers will make every effort to retain their high performers especially in hard economic times but those with less skill will be the first to go if job cuts need to be made. In a competitive job market it is the strong who survive.
Today, it is not only the wealthy who are exposed to equity markets as was largely the case a generation ago. Nearly everyone who is a member of an o
First of all, don't panic and refrain from making hasty decisions. Maintain a long-term perspective when it comes to investing as the markets experience ups and downs on a regular basis. If you are going to need the funds within one or two years, you might want to reduce your exposure to equities. Determine if your current investment profile is appropriate and change it if necessary. Just because the value of your investments falls, it doesn't mean that you have actually lost money. You lose money only when you sell an investment at a price that is lower than when you bought it. Make sure that your portfolio is diversified and professionally managed. And take the time to educate yourself about investments. Read the Wall Street Journal, Barrons or The Financial Times.
You may also consider delaying retirement to a
For those who have assessed their situation and developed their plans to survive A poster that helped the people of
The poster reads: "KEEP CALM AND CARRY ON".