Ric Edelman, founder of the nation’s largest independent financial planning and investment advisory firm, released a 64-page report that warns of dire financial outcomes for millions of Americans. Edelman’s report, The Long-Term Financial Impact of Covid-19 and What it Means for You, asserts that the pandemic is leading people to bad investment strategies, poor career choices and the wrong financial decisions – all of which are avoidable.
“Americans are an optimistic bunch, but optimism is no substitute for honest evaluation, and hope is not a financial plan.”
The report was written for the firm’s retail clients and is now available to the public. In it, Edelman explains the firm’s long-standing, four-pillared investment philosophy – based on diversification, a long-term view, strategic rebalancing, and the use of low-cost, tax-efficient investments – and why a disciplined investment approach is more important than ever.
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“Americans without a sound investment strategy often fall victim to behavioral finance biases that cause them to make bad decisions,” said Edelman, who is considered one of the most influential thought leaders in the financial planning and investment management profession. He is in the Barron’s Financial Advisor Hall of Fame, hosts a popular radio show that airs on more than 100 stations across the country, and is a #1 bestselling author of 10 books on personal finance.
The report offers a 10-question Investment Readiness Quiz that can help investors determine if they’re in danger of panicking the next time stocks prices fall. “Millions of investors sold at the bottom of the 2007-2009 Credit Crisis,” Edelman said, “leading to massive losses from which many never recovered.”
