Given the number of requests we've had to post a megathread along with the volume of similar threads being submitted, we're consolidating future general discussion on this topic here.
Stock market turbulence
It's very natural to be feel concerned when there's a large drop in the stock market, especially after such a long period of growth, but it's important to keep perspective and avoid making rash decisions.
First, take a deep breath. Market downturns are not uncommon or unusual. Between 1980 and 2017, there were 11 market corrections and 8 bear markets.
Trying to time the market rarely turns out well and most people trying to enter or exit the market based on emotion, gut feelings, and everyone's predictions end up doing far worse than if they had simply continued business as normal. Stick to your plan and stay the course.
To quote Warren Buffett: "to buy or sell on current news is just crazy".
Don't make an emotional decision, don't try to predict where the market is headed in the short run, and make decisions for the long run. You're investing for decades, not trying to predict the Dow Jones or S&P 500 next week, next month, or even next year.
Being financially prepared and practicing sound finances
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Budget your money and reduce expenses. Fundamental to a sound financial footing is knowing where your money is going. Budgeting helps you see your sources of income less your expenses. You should minimize your expenses to the extent practical.
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Build an emergency fund. An emergency fund should be a relatively liquid sum of money that you don't touch unless something unexpected comes up. For most people, 3 to 6 months of expenses is good. A larger emergency fund may be warranted if your income is variable or uncertain. If you're in credit card debt, aim for one month of expenses and focus the rest of your money on paying down debt.
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There's more good stuff you should be doing in this video from Bogleheads and the PF wiki.
If you lose your job or are at risk of losing your job
Please head over to Job Loss Megathread: unemployment resources, state-specific information, and help!
Travel
If you have travel planned, read Coronavirus & Your Finances: What to Know and Do from Clark Howard.
Also see the megathread on /r/travel for news and updates on the US travel suspension and other impacts the virus is having on travel plans.
Refinancing
If you're in the market for refinancing your mortgage, it may be worth considering, but if you don't have a healthy emergency fund and extra cash, you may not want to refinance right now due to the up-front costs.
New on March 13th: Federal student loans
We will update this once more information is made known.
Updated March 20th: Federal tax payment and filing deadline extended to July 15th
Key points:
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Both the filing deadline and the payment deadline are now being extended to July 15th.
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State deadlines are not affected by the extension, but some states are providing extensions (the terms may differ, though). The AICPA is maintaining a summary of states' filing and payment guidance due to Coronavirus.
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If you are receiving a refund, you should probably still file earlier.
New March 20th: Many mortgage owners will be eligible to have their mortgage payments reduced or suspended for up to 12 months
Key points:
- The move covers about half of all home loans in the U.S. — those guaranteed by Fannie and Freddie. But regulators expect that the entire mortgage industry will quickly adopt a similar policy.
- You can't just stop paying your mortgage. Contact your servicer to find out if you are eligible for this or if your servicer has adopted a similar policy.
Other megathreads
Submitted March 12, 2020 at 09:13PM by dequeued https://ift.tt/2TKWbBN
