When you’re making a big financial decision – whether to buy a house, change careers, retire, etc. – chances are you already have a number of concerns.
But add to those a series of external events that seem tailor-made to tweak anyone’s financial anxiety.
Among other things, in just the past six months:
Through it all you’ve been living your life and trying to make smartfinancial decisions.
CNN talked with three certified financial therapists, two of whom are also certified financial planners, about how to handle a big decision if external factors are adding to your concerns about whether to make a move. Here are five steps they recommend.
Regardless of your political leanings, there is a lot going on these days that can feel unsettling, uncertain or upsetting.
“We’re in this period of perceived perma-crisis. For some, it can be paralytic. Forothers, it causes people to act rashly or impulsively,” said Joel Roberts, founder and CEO of Brescor Wealth Advisory in Massachusetts.
He calls it “financial freeze or flight.”
And that may be on top of other anxieties about, say, your industry, which couldreduce your feelings of job security.
When a client considers making an extreme financial move to protect themselves from external events, Rick Kahler, founder of Advanced Wellbeing in South Dakota, empathizes with them.
“We tell clients whatever their concerns, it’s legitimate to discuss,” Kahler said.
But he tries to draw them out further. If, for example, a client says they want to get out of stocks altogether, he lets them know he can get them the cash tomorrow if they’d like. Then he’ll suggest they map out how such a move would affect their financial situation.
“It helps them be conscious and make informed decisions,” he said.
After unpacking their concerns, he may recommend an intermediary solution, such as reducing but not eliminating their stock exposure. He said, usually the client realizes that the intermediary solution is enough to let them sleep better at night.
Whenever a client expresses fears about, say, buying a home and then losing a job, Aja Evans, board president at the Financial Therapy Association and author of “Feel-Good Finance,” will encourage them to reality-test those fears. (The FTA certifies financial therapists.)
“We go to the worst-case scenarios in their heads,” Evans said. Then she’ll ask them to consider, “What do you have in place to safeguard against that?”
For instance, she noted, they might consider whether they have a robust emergency fund or recall how they successfully handled financial insecurity in the past.
No one can predict the future, soadvancing or holding off on a purchase or essential financial move because of concerns over where tariffs, interest rates or stocks are going may not serve you well.
Better to take the emotion out of the equation, Kahler said, and instead ask yourself honestly: Is this something you need? Will this enhance your life today? Does this make sense as an investment?
“Because the problem with timing a purchase is who knows?” he said.
Or, as Roberts put it, “Uncertainty is the norm. You can’t wait for perfect clarity.”
Staying focused on your biggest needs and goals is critical.
As unnerving or worrying as a conflict abroad or protests in another city are, they’re not likely to have a direct impact on your finances. So distinguish between the information that is and isn’trelevant to your decision, Roberts suggested.
Ditto big swings in the market or a quarter-point cut in interest rates by the Federal Reserve.
Say you’re under contract to buy a home, Roberts said. “If you’re 90% of the way there, should a single stat change your decision-making process?”
Probably not, he said. There’s always going to be some number somewhere suggesting you’re making the wrong choice.
In other words, he said, “build a greater emotional tolerance to the noise.”