Firstly, please think about your health and safety before you can think about your financial health. Stocking up on vitamins, natural remedies, and other safe practices will truly help you and others through this phase. 

Now, that you are safe and healthy, what to do with your money? 

“Markets have crashed, should I pull out of the market?”

This could be a yes and no answer. 

Depending on your current financial position. Do you currently have enough money dedicated to an emergency? This money should not be tied up in real estate, stocks or bonds, but actual in cash. You also need to ask yourself what approach you are adopting. If you are taking the long-term approach and plan on staying in the stock market to reap the benefits after 10, 20, 40 years then possibly practice patience and understand that we will recover from this phase. 

Again remember that this crisis is a health crisis and not a crisis that was not stirred up by the financial markets. This gives provides some comfort that when there is a cure, things will go back to normal. People will be able to go back to work. 

“The stock market has gone down, should I invest now?”

Yes, and no. Firstly, look look at your money and allocate a certain amount of money that you are willing to spare with. Investing in the stock market is risky regardless of what time of the year it is. There will always be a risk, hence you must be prepared for it. I do not recommend using all of your money in your emergency fund, or all of your savings to invest now, because there is always a risk involved. The yes part comes in because now stocks are valued extremely low. In other words, you would be buying stocks at a SALE. However, do not fall into the trap of trying to wait too long for the lowest price that you can get your stock at. You may be successful with it or not. Regardless, you would be purchasing at a sale. 

The Federal Reserve Bank has cut the interest rate to zero, what should I do?”

Firstly, cutting the interest rate to zero, means that your cost of borrowing money is basically nothing. Again, if you are borrowing money while you are in a fairly stable financial position that can pay back the debt. For instance, this would be a great time to check your mortgage especially if your interest rate had not to be set to be the same rate for the duration of the mortgage. 

This would also be a great time to work on building good credit because again the cost of borrowing is incredibly low.  

“There is too much instability, should I withdraw all my money?”

Yes, there is so much instability. However, remember where it is coming from. It is recommended that at this time you diversify your money. This means that you have some in stocks, bonds, real estate etc. Withdrawing some cash ready for any emergencies, on top of your emergency fund would also be a great way to further prepare for the rainy days ahead. Go ahead and store some cash under your pillow, or under your mattress, however, you do not want to withdraw all of your money.