From lockdowns to market volatility, COVID-19 has led many people to a financial awakening. Not only has the pandemic had a potential effect on your personal life, but also likely the way you spend and approach your money, too.

Given the specific way COVID-19 impacted you and your loved ones, you may have experienced a shift in priorities, values, and long-term goals.

What does the aftermath of COVID-19 mean for your money moving forward? 

Identify Your Priorities In a Post-COVID World

Your goals and priorities can be subject to changes, but perhaps COVID-19 shifted them dramatically. In pre-pandemic times, traveling may have been a top priority for you and your family. With COVID, you might want more time at home with family or to purchase a vacation home so the family can travel safely. 

Know where your priorities have shifted and why. Ask yourself:

• Is this a long-term change? 
• Why are these new elements important to you and your family? Think about what will be important to you 5, 10, or 30 years from now.

At Vestia, our values-based planning process helps our clients better understand their priorities. After a life-changing event, such as marriage or a global pandemic, we have what we call Honest Conversations with our clients to better understand how these events changed their perspective, priorities, and needs. 

We know this process can be extensive and as doctors, it can feel impossible to find the time — but it’s important to think about what your “new normal” looks like as you emerge post-COVID.

Above all, the pandemic highlighted the idea of building wealth that matters. Money should enhance your life — and we want to help you use your resources to work towards that goal. Your life can be your top priority, and aligning your money with those priorities and values can inspire joy, meaning, and fulfillment.

Shift Your Resources To Reflect Your New Vision

Once you have your new priorities set— vacation home versus travel budget, for example— the next step could be to reallocate your resources to fit those needs. Think of this as short-term shifting. 

For example, let’s say you choose to buy or build a vacation home— you may have to shift your travel resources to start saving for a down payment, property taxes, maintenance, and upgrades. You may also need to make some changes elsewhere in your plan and start saving in other areas, like retirement, more aggressively.

From The Front Lines To Forest Trails: A Case Study

Let’s take a look at a real-life example. We worked with a Critical Care physician on the front lines of COVID-19, who was completely burned out about a year into the pandemic. It was affecting their livelihood and relationship with their family. 

Previously, their goal had been to fund more elaborate annual beach vacations with extended family, but the pandemic made them realize how much they valued time with their immediate family. 

They dedicated more time to exploring nature as a family for a short-term respite and quickly realized how the extra time spent outdoors served as a long-term mental health boost. This led to them looking at recreational land and putting an offer on a property where they plan to spend a couple of weekends per month recharging.

We watched the life come back into this doctor through this introspective process as they figured out what was going to bring the reprieve they needed. Did they have to adjust their financial plan to accommodate this change? Absolutely— but they realized their priorities shifted and made the necessary changes.

Once you’ve identified what’s important, it’s all about playing with the numbers to see how realistic it is. 

Set New Long-term Goals 

If your priorities have shifted, it’s a good idea to take another look at your long-term goals. 

• Has your vision for retirement changed? 
• Are you hoping to retire earlier? 
• Does your career bring you joy and fulfillment?
• Do you want to start your own practice?

Let’s say that pre-pandemic, your goal was to retire in your mid-50s, which would have likely required more restrictive recreational spending. But now, you’ve realized that you would like to put immediate resources into a beach house, recreational property, or take a compensation hit to have more vacation time to spend with loved ones. This may mean that you’re willing to work a few more years and retire later to have the time now. 

This long-term shifting process is what we like to call “wealth that matters”. It’s about understanding your priorities and adjusting your plan to put those elements first. We love working with clients to help them find the freedom and confidence to live life on their terms.

Time is Precious: A Case Study

For example, we had a Vestia client share that multiple members of his family have had strokes in their 50s. He is hyper-aware that if he spends all his time working now and waits until retirement to travel, he may not get that opportunity. 

He set his schedule up intentionally where he works less, therefore gets paid less, but has more time with his family while he knows he is healthy enough to make the most of it. This is a great example of “wealth that matters” in practice.

Vestia Is Here To Help

It’s our mission to help you use your resources in ways that empower you to live your ideal life. COVID-19 has impacted nearly every aspect of our lives, and it could have a significant impact on the way you want to live your life moving forward. If your goals and priorities have shifted, it’s time to consider revisiting your financial plan. 

Financial planning with Vestia isn’t about checking all of the boxes, it’s about understanding where you’re at and where you want to be. Find more meaning to your financial journey and contact our team today.

Disclaimer

Investment advisory services are offered through Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, and Vestia Advisors, LLC. Securities are offered through Ausdal Financial Partners, Inc., 5187 Utica Ridge Rd, Davenport, IA. 52807 (563)326-2064. Member FINRA/SIPC. Vestia Personal Wealth Advisors, Vestia Retirement Plan Consultants, Vestia Advisors, LLC, and Ausdal Financial Partners, Inc. are independently owned and operated.

This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor.  This information is not an offer or a solicitation to buy or sell securities.  The information contained may have been compiled from third-party sources and is believed to be reliable.