Cuba Financial Group: Making Progress in a Challenging Time

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Saturday, April 25, 2020

Left to right: Paul Mills, wealth advisor; Tyler H. Cuba, CWS, CEO and senior advisor; and Richard R. Cuba, CFP, CWS, president and senior advisor, work together to help clients with a wide variety of needs while maneuvering through a complex financial-services world. The Cuba Financial Group team is here to serve you and your family and help make this world a little less complicated.

3 tips to recover financially from the pandemic

At the beginning of 2020, no one could have imagined the situation we would be facing by the end of the first quarter. The novel coronavirus (COVID-19) arrived as an invisible threat that has disrupted our lives as we knew them just a few short months ago. The only thing certain at this particular moment is uncertainty itself. From a financial standpoint, these are the moments for which a retirement plan is so important.

For more than 37 years, Cuba Financial Group has advised clients through some of the most difficult and challenging times on record. It has become our mission to help clients understand the importance of a well-planned retirement strategy for long-term success. When we discuss long-term planning, we don't mean to only focus on the long-term, but instead a great deal of importance and time should be spent planning for the events -- both expected and unexpected -- that occur in the short-term. In fact, we believe short-term planning is essential to long-term success.

Now is a great time to reevaluate your current situation and better prepare yourself for the future. Here are three important financial measures to take now:

1. Revisit your budget.

Since you may have some extra time on your hands right now, use it to take another look at how you've allotted your money to be spent monthly and weekly, and then look at how you actually spent your money during the months leading up to the COVID-19 pandemic. After life goes back to "normal," do you need to allocate money differently or tighten up in one area of your budget? One way to create a budget is to spend approximately 50% on needs, 30% on wants and 20% on savings. Decide now how you'll spend your money once we go back to work and school, and then stick to it once we're finished with quarantine and social distancing.

2. Fund your emergency account.

As hard as it might be to set aside money each week for savings, COVID-19 has shown us how important it is to save for emergencies and unexpected expenses that arise. How can you ensure you're prepared? You may have heard it before, but it's solid advice: when you get each paycheck, pay yourself first. Set aside 10% of your take-home pay for savings at minimum; if you can contribute more, be sure to do so. It is generally good to have enough set aside that you could live for three to six months from your emergency savings without outside income.

3. Continue contributions to your retirement plans.

The best thing you can do for yourself and for your children is to make sure you will be provided for during your retirement. Thus, it is just as important as ever to ensure you are still contributing to your retirement plans. In doing so, we know that long-term investing means riding out the storms that come up along the way. We also know that these financial storms can provide excellent investment opportunities. Stocks and bonds are now cheaper than they have been in some time. Continuing to take advantage of the benefits of dollar cost averaging today, especially when the markets are on sale, is a great way to build additional long-term wealth.

Whether you're just getting started or actively preparing for retirement, it's helpful to consult with an objective third party. Human nature causes us to act out of emotion when our accounts go down. As an independent firm, Cuba Financial Group puts your best interests first. We seek to serve as a support system for our clients, helping them make educated and informed financial decisions that aren't driven solely by emotion.

We're here for you, and we're here for your friends and family, too. If you, your friends or your family need help with financial planning needs, we are happy to offer a complimentary review, pointing out areas that are working to your benefit, and make recommendations in areas that may need some adjustments. Sometimes, simply speaking with an experienced financial advisor team may help investors feel more confident and less concerned with the day-to-day market activity.

If you would like to discuss these or other financial planning and wealth management strategies with a financial planner, contact Cuba Financial Group at (573) 334-7000. We look forward to serving you.