As the owner of Noble Financial Group, LLC, Luke Noble leads a North Andover-based planning firm that focuses on holistic financial and estate planning solutions. With more than $300 million in assets under management, his client-first approach emphasizes transparency, tailored strategies, and long-term planning outcomes.
Mr. Noble earned his bachelor of science in finance from Salem State University and holds several industry designations through the American College, including ChFC, AEP, CASL, and CFP. Prior to launching his firm, he was an investment advisor with MetLife Securities, where he specialized in private wealth and insurance solutions.
Luke frequently hosts financial literacy workshops for Boston-area companies and has served in leadership and advisory roles with organizations like the Yankee Networkers BNI and North Shore Pride. He remains dedicated to community service through his work with Gifts that Matter and the Essex County Estate Planning Council.
A stock market crash, recession, natural disaster, or geopolitical instability might trigger a financial crisis. When creating financial plans, particularly those related to your investments, it is essential to consider the potential for a financial crisis. Even though no investment is risk-free, you should still take the necessary measures that will help you minimize loss and remain financially stable even when things return to normal.
One of the very effective ways to protect your investments from the financial crisis is to diversify your asset classes. You should diversify your investment across various asset classes, including commodities, real estate, cash, and bonds. This reduces the possibility of a failing sector wiping out your entire portfolio. You can diversify your investment across various asset classes, including bonds, cash or cash equivalents, real assets, and equities.
High-quality corporate and government bonds offer stability and a source of income during economic downturns. Liquidating some of your investments provides you with flexibility in instances when you need funds urgently. Real assets, such as gold and real estate, typically serve as inflation hedges, acting as a store of value during market volatility. Additionally, holding a mix of international and domestic stocks can help mitigate your risk.
Maintaining an emergency fund will keep you afloat in a financial crisis while giving you the option not to sell your investments at a loss. You should set aside about three to six months’ worth of your living expenses in a high-interest-yield savings account or money market fund. Emergency funds come with a cushion that helps you to cover expenses, unexpected costs, and even job loss without having to sell your investment when the market is down.
One smart way to protect your investments during uncertain times is to use dollar-cost averaging (DCA). Instead of investing a large amount all at once, DCA means you invest a fixed sum regularly, like monthly or quarterly, regardless of market conditions. This approach helps you avoid trying to “time the market” and can mitigate the impact of market fluctuations. You’ll end up buying more shares when prices are low and fewer when prices are high, which can balance out your overall cost over time.
It’s also essential to maintain composure when markets are volatile. Fear, panic, or even overconfidence can lead you to make hasty decisions, like selling investments during a dip or jumping into risky trades. These reactions often do more harm than good. Stick to your financial plan and remind yourself that markets tend to recover over time. If you’re feeling overwhelmed, consider working with a financial advisor who can offer guidance and keep you focused on your long-term goals.
You should also monitor your debt level to ensure that it does not exceed a specific threshold. High personal or investment-related debt can become quite burdensome during economic downturns. So, ensure that your debt is manageable and always prioritize paying off high-interest loans.
Finally, consider adding defensive stocks to your portfolio, which include companies in sectors such as healthcare, utilities, and consumer staples. These businesses remain steady even when the economy struggles, as people still require basic services and products. By balancing your portfolio with more stable investments, you can reduce volatility and maintain more consistent returns when other parts of the market are unpredictable.