As we’ve been making our way through this market correction, we’ve been getting many questions about which financial moves you should be making and which ones to avoid. While market volatility can be stressful and scary for us all, the way in which you approach and react to the fluctuations in the markets themselves can say a lot about your portfolio and investments. So, let’s jump in.
First and foremost, it is important not to panic and make sure you stick to your long-term plan when the market is going through a correction period. As we have seen time and time again, your long-term strategy will most likely stay the course through the ebbs and flows of the market. Don’t obsess over the markets – they will always do their own thing!
If you do happen to have some extra cash sitting on the sideline during a market correction, you should think about putting that money to work and invest! Dips in the markets are good opportunities to enter or invest more if you are comfortable with your overall risk.
However, if you find yourself having trouble sleeping at night through all this volatility, it might be a sign that you have too much risk in your portfolio. Maybe think about re-allocating your portfolio or working with a professional to feel more comfortable about your situation. It’s extremely important to understand your risk tolerance before investing to ensure that you can handle the investments you are taking on. If you would like access to our complimentary risk tolerance questionnaire software, email us at firstname.lastname@example.org to learn more or click here.
If the COVID-19 pandemic taught us anything, it’s the importance of having a plan in place for when life throws uncertainties and hardships our way. If you do not have a financial plan, NOW is the time to implement one. Not only is it smart to have a financial plan set in case of emergencies, but you should also have an estate plan set up. For more resources on how to get started on estate planning, check out our blog here. Remember, long-term plans are put in place for a reason, so try not to panic and do not derail your plan in the presence of volatility. Also keep in mind that everyone’s personal and financial situation differs, so make sure not to confuse your time horizon with your friend or next door neighbor. If you find yourself nervous or anxious during this time or even feel comfortable but have questions, we are here to help. You can send us an email at email@example.com or schedule a complimentary meeting here.