Market volatility is scary. We get it. The last thing you want to do is lose a large portion of your nest-egg when you’re in the retirement red-zone. In this article we’ll share with you 5 tips for when the markets get rocky.
The truth is, volatility is inevitable. It’s not a matter of if it’s going to happen, it’s when. When volatility strikes, investors can feel anxious and make decisions based on emotion, and that’s no way to make decisions about your investments. So, here are 5 tips we utilize with clients…
- Don’t Panic! This is first and foremost. When all you hear on the news is doom and gloom, the best thing you can do is work with your advisor and trust in the plan you created together. Making rash decisions could lead to big mistakes.
- Actively Assess Your Risk Profile. Every investor’s risk tolerance is different. You need to consider factors like age, personality, short-term goals, long-terms goals, previous experience with money, and more. Whether you have a high or low risk tolerance, be sure to maintain an active approach.
- Have an Investment Strategy. This is the strategy between you and your financial advisor that outlines general rules for meeting your investment objectives. It typically includes how investments are monitored, addresses risk, and defines communication between you and your advisor.
- Stay Diversified: A properly diversified portfolio can include a variety of stocks, bonds, and cash or cash alternatives. These investments can be domestic or foreign and include a variety of industries and investment styles.
- Don’t Rely on the Media: Remember, no one has a crystal ball when it comes to the future of the markets, and even scrutinizing past events cannot fully dictate the market’s future. Reach out to your financial advisor, calmly review your current strategy, and don’t focus too much on stock market news. We see this mistake all the time.
If you’re concerned about volatility, or if it’s been a while since you’ve heard from your advisor, contact us to schedule a complimentary second opinion at (877) 807-2079.
Advisory Services offered through CG Advisory Services, an SEC Registered Investment Adviser. Securities offered through Geneos Wealth Management Inc. Member FINRA/SIPC.