What does the escalating tension in the Middle East mean for you and your finances?
News of growing tensions in the Middle East may leave you feeling anxious. Wondering what impact this might have on the markets and your money? Here’s what you can do now to protect your investments.
The growing conflict in the Middle East is evolving rapidly, and the markets are reacting just as fast. Our priority is to support you and help you navigate this situation.
Concerned about how this volatile situation could affect your budget, your investments and your retirement savings? We’re here for you.
What actions can you take right now?
Here are 3 things you can do to help protect your finances:
Don’t panic with your investments
- Think things over carefully. Don’t make rash decisions about your finances during challenging economic and political times.
- Resist the urge to pull money out of your RRSP. Selling market-based investments could cause long-term losses to the value of your portfolio.
- Build up your emergency fund. A TFSA is a great place to put money aside for when you might need it.
Diversify your portfolio
- Focus on the fundamentals: a diversified mix of investments across sectors and geographies.
- Working with a professional, choose the right allocation of assets and create a disciplined investment strategy. That will help you get through market volatility and reach your long-term financial goals.
Get professional advice to help you navigate through challenging times
An advisor can help build the right investment strategy. You’ll be able to deal with market volatility, while focusing on your goals. If your situation or outlook changes, an advisor can work with you to adjust your financial strategy.
Frequently Asked Questions
Because historically the markets have bounced back and recovered. Many different events have sparked volatility in the past. In all these cases, you’ll see a cycle.
"When markets become volatile, they move to the downside, but then they recover," says Sun Life advisor Brian Burlacoff. "The pattern here is that markets are always upwardly biased in the long run. A diversified portfolio is always upwardly biased in the long run."
When you sell on a down market, you lock in those losses. Then, once you’re out of the market, you’ll have to decide when to get back into the market. And when markets recover, they tend to recover swiftly, significantly and unexpectedly. If you miss that recovery, it can have a substantial impact on your investment portfolio.
It depends on how the situation evolves in the coming weeks and months. Market volatility is normal. You may be better off staying the course and sticking to your original plan if:
- Your goals haven't changed, and
- You have a diversified portfolio.
Remember, history tells us that markets grow over the long term.
- If your employer offers group benefits from Sun Life, you can check your coverage and find the support you need on My Sun Life
- You can find a mental health professional near you with Sun Life Provider Search
- If you have employee benefits at work, check to see if it includes an Employee Assistance Program (EAP). This program often offers free virtual counselling or therapy sessions for employees and their families.
We’re here for you
Our commitment to helping you manage this uncertainty is unwavering. You can count on us.
Over our 160-year history, we’ve navigated through complexity with adaptability and resilience. We focus on what truly matters: helping Canadians achieve lifetime financial security and live healthier lives.
Together, we’ll get through these challenging times.
Questions or concerns?
We’re here to help.
Reach out to your Sun Life Advisor.
Don’t have an advisor? Find an advisor near you
This article is meant to only provide general information. Sun Life Assurance Company of Canada does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.