Although the COVID-19 pandemic is bringing a lot of economic uncertainty to many Albertans, some experts say there are ways to protect and even grow your money as the crisis continues.
Ben Osmond, a financial adviser and executive consultant for the IG Wealth Management firm in Lethbridge, says the stock market may be a good place to start.
“For years, we’ve been prepping clients for something like this,” he says. “We’ve been holding more cash than usual, holding more fixed income-investments.”
Vishaal Baulkaran, an associate professor at the Dhillon School of Business at the University of Lehbridge, says when investing in depreciating companies, it’s important to consider their reputation.
“Air Canada, for example, is it still a good company? Is it still well-run? There may be value as well in picking good companies that have been affected negatively because of the entire market trend,” Baulkaran says.
He makes it a point to say that when deciding to invest in a company, value is one of the bigger factors to take into consideration.
Baulkaran also says that companies like Air Canada, which is known as a reputable airline, can still attract investors with the quality service they provide, despite their stocks depreciating.
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According to both Osmond and Baulkaran, when it comes to personal budgeting, finding savings and being aware of relief stimulus packages being offered by both the provincial and federal government is key.
“You can cut back on spending — things like discretionary spending — and entertainment,” Baulkaran says.
“I guess those are cut back for you since everything is closed… so that’s one thing folks can do,” he says. “Folks can also call their banks and defer mortgage payments.”
Baulkaran says some banks may even defer mortgage payments up to six months.
“One of the best things I can advise is, if you don’t have family or friends for support, and you don’t have savings at this time, it’s best to really make sure you’re educated and knowledgeable on the current government programs which are offering assistance,” Osmond says.
“They’ve come out with many and there’ll be many more to come.”
The two experts say reducing one’s budget could also include looking into lowering any expenses, such as utility, phone and internet bills. Getting rid of any credit card debt is recommended as well since interest rates can become burdensome.
They also advise people not to take on any big loans at this time, if they do not have much money saved up or are struggling to get by.
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