Swine Flu and Your Personal Finances

I received two email questions this morning to this effect:

Do I need be concerned about swine flu? How will it affect my finances?

An interesting question. And probably one prompted by the fact that the financial press is talking about how the swine flu is sending stock markets around the world lower. However, in terms of affects on your personal finances, I’m not sure that this is something to get too panicked about.

As far as your stock market holdings go, you aren’t likely to do much worse than you have been in the last few months, even though the financial markets are in turmoil over swine flu. Besides, if you employ a long-term investing strategy, this will just be a blip on the market in 15 years. So your retirement account is likely safe. If you’re really into day trading, you might be able to make a little money by investing, short-term, in pharma stocks, which are set to spike as flu treatments go out. (I’m not an investment professional, though, nor am I fond of day trading. I’m just sticking with my regular investment plan — low cost funds, which I can buy a little more of now.)

Swine flu and your health insurance

The only real personal finance effects I see happening in the near future as a result of swine flu are likely to be such things as lost income due to missing work and an increase in your health insurance premium. If you end up with swine flu, and you visit the doctor, you will see that reflected next time your health insurance policy is up for renewal.

Right now, the CDC feels as though swine flu is being spread in a manner similar to other flu viruses. There aren’t many cases in the U.S. yet. You can protect yourself from swine flu by washing your hands frequently, and keeping them away from your face.

image source: Daylife