Market Madness Got You All Worked Up?

Market corrections can be unsettling for most investors. You cannot control the ups and downs of the investment markets, but you can do a few things to alleviate the feelings of frustration and helplessness. Start by taking a breath, put your thinking cap on, envision the future, and if you need to, call your financial planner.

First, ignore the media hype – keep in mind that that’s all it is, hype. Wild headlines about market gyrations sell stories and give talking heads something on which to opine. Second, do nothing! That’s right, do nothing. If you have a solid financial plan and have been keeping an eye on your asset allocation, you likely need to do nothing. You and your financial planner should already be monitoring your plan and asset allocation on an on-going basis. If you need reassurance, give your planner a call, send a text or an email and talk to them about how you are feeling. Your financial planner most likely feels what you feel. After all, they are also involved somehow in the investment markets and their own retirement and savings are affected to some degree. Third, check with your financial planner and see if the market downturn is a good time to buy. Chances are it is.  A correction can be a good time to add to your diversification whether you are purchasing individual stocks, mutual funds, or bonds. Do not buy a stock, bond or fund just because it dropped in price; work with your planner to make sure it fits into your overall investment plan and goals. Next, if you are older and approaching retirement, you and your financial planner should have already planned your liquidity position several years before your retirement. You want to make sure you have appropriate cash holdings, fixed-income and equities that match your retirement goal. Finally, relax! If you need reassurance, call me and we can talk it through.

Keep in mind that time and volatility work to your advantage when it comes to long-term financial planning and investing, so stay the course! As mentioned, a downturn may be a great time to add to your holdings. Consider upping your 401(k) contribution, putting more money into your IRA, or even adding to funds you already hold. A considerable run-up in the market may be the perfect opportunity to take some profit and build on your cash position or fixed-income allocation.  Your adviser can hold your hand and walk you through these market changes and be a sounding board for your concerns. ‪A good financial planner will also remind you of your goals and timeline and why the day-to-day changes of the market shouldn’t affect your long-term plan.

As an independent Certified Financial Planner™, I can help you decide on a plan, set a timeline and put that plan into action. I can also be there to talk you through market gyrations and remind you of your goals and timeline. Let’s start planning a calmer future for you today. #talktometuesday #education #Hireaplanner #marketmadness #upsanddowns #gyrations