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Financial Advisors and Retirement Planners for Attorneys and Couples

Strategies To Grow Your Wealth During The 2020 Financial Crisis

By Darren Wurz


To say the coronavirus pandemic has taken the world by storm wouldn’t do justice to the severity of the situation. Unfortunately, we’re having to balance the negative effects of this widespread virus with job loss, reduced working hours, and decreased portfolio balances.


Times are tough. Thankfully, there are steps you can take to leverage the 2020 financial crisis and help grow your wealth. Let’s talk about 5 strategies you can use today. 

1. Reevaluate Your Finances (And Refinance Debt)

A financial crisis is a perfect time to go back to the drawing board and reevaluate your current financial situation. Is your emergency fund too small? Is there more risk in your portfolio than you’re comfortable with? Do you have more debt than you should? 


Take a hard look at your finances to identify ways you could save money—either now or in the long run. For example, now is an ideal time to:

  • Refinance your mortgage to a lower rate. Interest rates have fallen back to a historic low. As of April 28, 2020, the average APR for a 30-year fixed-rate mortgage is 3.37%. (1) If you’re looking to cut your mortgage payment, call your lender and see if you qualify for refinancing. Just be sure to factor in closing costs, which could eat into your savings.
  • Take out a life insurance policy (or increase your current coverage). If you’re like most people, the coronavirus pandemic has you thinking a lot about life insurance. I’ve actually received quite a few calls from clients looking to obtain or increase coverage. The good news is it’s not too late to apply and lock in a low rate if you’re healthy. Life insurance rates are largely tied to interest rates and the market, so buying now while rates are low could be a good way to secure your family’s financial future. (2)

2. Keep Investing

Investing seems like the last thing you want to do right now. I get it. But if you really want to grow your wealth, you need to consider investing because now could be a great time to buy some stocks at a steep discount. (And who doesn’t love discounts, right?)


If we look back at the 2008 financial crisis, we see that stocks fell by more than 50%. (3) But the market began to bounce back in 2009. Those who persevered saw their portfolios eventually recover and press on to new highs. 


We’ve had 12 bear markets since World War II. (4) And guess what? We recovered from every single one of them. We can’t say when stocks will stop falling or when this crisis will be over. But we do know that if you’re patient and keep on investing, the market should recover and you will reap the benefits of the recovery. 

3. Limit The Losses

But what if you’re retiring soon and this financial crisis has made you realize you’re too heavily invested in stocks? In this case, it could be smart to re-evaluate where you are and how you’re investing. You might consider a “stop-loss” on some of the stocks you own. A stop-loss is an order to sell stocks at a pre-determined price. Now that markets have recovered somewhat from the lows of March, you might want to re-evaluate your risk level. It’s important, however, not to make drastic changes out of fear or emotion.


At Wurz Financial Services, limiting loss and minimizing what we call “draw down” is our primary concern for our clients. That’s because a big drop just before or after retirement can severely impact your future outlook. We offer a “tactical” investment approach. A tactical approach is one that adapts to market conditions to attempt to take advantage of market trends and limit participation in downturns.  

4. Find Ways To Save On Taxes

Growing your wealth doesn’t necessarily mean making more money. One of the most efficient ways to maximize your savings is to minimize your tax burden. Fortunately, there are plenty of strategies you can use to legally reduce your tax bill, like:

  • Contribute the maximum amount to your tax-advantaged retirement and HSA accounts.
  • Use deductions to reduce your taxable income and credits to reduce your tax bill.
  • Reevaluate your tax filing status to ensure you don’t face unnecessary penalties.
  • If you are subject to RMDs, the IRS is allowing you to skip RMDs for 2020.
  • Also, what a great time to make some charitable contributions to non-profits that may be struggling during this time

5. Seek Help From A Financial Professional

If you’re not a financial professional, it can be stressful to figure out how to grow your wealth during the 2020 financial crisis. And considering all that’s going on in our world, you have enough to worry about. In times like these, consider connecting with a trusted financial advisor who can help you create a step-by-step plan for protecting and growing your wealth today. 


Wurz Financial Services is a financial advisory firm that’s dedicated to helping you weather any financial storm that comes your way. Whether you need help managing your portfolio, creating a financial plan, or minimizing taxes, we’re here to help. Schedule an no-obligation appointment by calling 859-291-9879 or emailing today! 


Also, join us at one or both of our free webinars: 

About Darren

Darren Wurz is a co-owner and financial planner at Wurz Financial Services, an independent, family-owned and operated financial services firm dedicated to helping its clients transition from their working life to a comfortable retirement with confidence. Darren received his master’s of science in financial planning from Golden Gate University and also holds the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation. He operates the Northern Kentucky/Cincinnati office of Wurz Financial Services and is an active member of the Covington, KY rotary club, the Northern Kentucky Chamber of Commerce, and the Covington Business Council. To learn more about Darren, connect with him on LinkedIn.






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Check the background of this financial professional on FINRA's BrokerCheck