Financially Speaking: Money Matters That Keep Us Awake

As I sit down to write today, the government shutdown is on Day 16. Three days ago, the Middle East peace deal was signed, and there’s growing hope that the war between Russia and Ukraine may finally come to an end. Isn’t that what this time of year is supposed to inspire? Peace and happiness?

What keeps you up at night?

The answer often depends on your stage in life.

For young children, Christmas Eve brings the kind of sleepless excitement every parent knows well, the anxious anticipation before bed and the unbridled joy of Christmas morning when they finally wake.

Students may find themselves tossing and turning over upcoming exams before winter break. Depending on the school district, finals might even fall after the holidays. With so much seasonal excitement, it’s easy for studying to slip through the cracks.

If you’ve recently been downsized, or if you’re a government employee not receiving a paycheck during the shutdown, those worries may be what’s keeping you awake. While furloughed employees will eventually receive back pay, those who have lost their jobs entirely face real concerns about paying bills and putting food on the table. In these cases, reach out to your lenders to explain your situation. Some may offer hardship programs. Try to cut unnecessary expenses, and if you’ve built up equity in your home, consider a home equity loan or line of credit.

Maybe your sleep has been restless since April 2, when the president declared Liberation Day. Some people I spoke with decided to sell – or substantially reduce – their stock holdings, fearing the new tariffs would spark a recession. Within five days, the S&P 500 fell 10.7%, which seemed to justify their decision. But rash choices don’t always work out. Despite that short-term drop, the market rebounded and is up over 17% from April 2 through Oct. 15. It’s human nature to assume every geopolitical event will cause the markets to fall, but history shows otherwise.

Perhaps you stayed on the sidelines during the recent market rally fueled by artificial intelligence (AI). You watched the market hit new highs day after day, then finally decided to jump back in. If you invested modestly, you’ll likely be fine. But if you made a big bet on those stocks, well … that may be what’s keeping you up at night.

Parents of high schoolers might also be losing sleep, especially if college costs loom large and savings fall short. If your children aren’t academically or athletically gifted enough to earn scholarships, it’s worth rethinking their education plan. Instead of paying $60,000 or more annually for a private university, consider having them start at a community college and transfer to a state school later. If they live at home and work part-time, they could graduate with little to no debt. It’s not the traditional “college experience,” but it’s a smart financial decision that pays off in the long run.

If you’re nearing retirement and realizing you don’t have enough saved, that too can cause sleepless nights. It may be time to adjust your goals or delay retirement for a few years. It’s far easier to stay in your current career longer than to find a new job after you’ve already retired.

Many of these worries are financial and therefore fixable. The first step is to seek professional help. Look for a fee-based financial planner who is a CERTIFIED FINANCIAL PLANNER®(CFP®) practitioner or Chartered Financial Consultant (ChFC®).

Working with an adviser can help you make realistic decisions and set achievable goals. They’ll design an investment portfolio that won’t keep you up at night. When planning for retirement, be honest about both your lifestyle needs and your risk tolerance. If you’re married or have a partner, this means having open discussions together. A conservative investor may get anxiety (or “agita”) with more than 30% in stocks, while a risk-taker might get agita from too little exposure. Compromise is key. It will help both of you feel comfortable with your shared financial path.

If your portfolio is well-structured, you’re less likely to make rash decisions. Stay the course, and your investments have potential to recover and grow over time. Most of us have lived through market downturns before – a correction, defined as a 10% or greater drop, is perfectly normal. Remember the dot-com bubble of 2000 or the 2008 financial crisis? Both were driven by speculation and leverage. Before each crash, everyone felt like a financial genius until panic set in. Selling at the bottom locks in losses; patience, on the other hand, lets time work in your favor.

With markets near all-time highs, now is an excellent time to review and rebalance your portfolio. After a strong year, your stock allocation may be higher than you’d like. Look at your taxable investment accounts and consider harvesting any losses. Rebalancing retirement accounts is easier, since it doesn’t create tax consequences. Once your portfolio is realigned with your goals and comfort level, you might just sleep better at night.

The Zombies released the song “This Will Be Our Year” in 1968, and its chorus captures the spirit of persistence and optimism:

“Now we’re there and we’ve only just begun,

This will be our year, took a long time to come.”

Here’s hoping 2026 is your year – the one when your dreams finally take shape.

My wish for you this holiday season is peace and happiness. May you have a Merry Christmas or Happy Hanukkah, and may 2026 bring good health, joy, and prosperity!

Fred Dunbar, CLU®, ChFC®, RFC®, AIF®, is the former President of Planning Directions, Inc., a registered investment adviser, and Common Cents Planning, Inc.. Securities are offered through Commonwealth Financial Network®, member FINRA/SIPC. Fred may be contacted at 800-647-0762, by e-mail at freddunbar@commoncentsplanning.com or by mail at 239 Baltimore Pike, Glen Mills, PA, 19342.

This commentary is meant for general informational purposes only and is not intended to be a substitute for professional financial, tax or legal advice. Investing involves risks including the potential loss of principal. Past performance is no guarantee of future results. All indices are unmanaged, and investors cannot actually invest directly into an index. Unlike investments, indices do not incur management fees, charges, or expenses. Past performance does not guarantee future results.