3 Things To Do In A Market Downturn
April 1, 2020
You often don’t hear much about the markets when they’re doing well. Life goes on as normal, and you have a sense of security that your financial future is in good hands.
But when the market goes down, people tend to panic. That’s a natural reaction when you see your savings decline right in front of your eyes. You might start having second thoughts about how you could have allocated your money a little differently, but what can you actually do about it now?
First, take a deep breath. You have resources in your corner to help you stabilize your retirement
income avenues. No matter how much of your portfolio is tied to the market’s performance, here are three things you should consider doing when the market is declining:
1. SCHEDULE A RISK EXPOSURE REVIEW: How much of your income can be affected by a market downturn? You might think you have a good idea, but do you honestly know? A Risk Exposure Review will tell you the truth and help give you clarity on whether now might be a good time to make some adjustments or to stay the course.
2. REQUEST A RETIREMENT INCOME ANALYSIS: This is nothing more than an analysis of the different sources of income you plan to use in retirement, which might include your 401(k), personal savings, Social Security or even a pension. With everything laid out on the table, this will help you think through strategic ways to make your money last as long as you live.
3. DEVELOP A HOLISTIC FINANCIAL PLAN: You deserve a great retirement, and we believe a great retirement starts with a plan. However, there’s a big difference between having a financial portfolio and having a financial plan. Sit down with a financial advisor to develop a sound financial strategy that is designed to hold up — regardless of what happens in the markets.
CALL TODAY FOR PROFESSIONAL FINANCIAL GUIDANCE!
It’s normal to have questions and concerns about your financial situation, especially during a market downturn. You don’t have to answer your questions alone — we’re here for you!
Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.
3/20-1119552C
In these uncertain times, it's hard to watch the news without worry. It's hard to look at our financial statements without fear. I urge you ladies, stay the course. Markets go up and down across a pretty regular, historical cycle. The patterns are predictable and we can use our understand of history to prepare ourselves for the future. But what does that mean? Millennials and Pre-Retirees: Every dollar you invest today buys more shares than the same invested dollars bought last week or last month. Take advantage of your youth and your long time horizon to retirement. Stay the course and buy the dip. The worst thing you can do now is to sell out of fear and lock in your losses. Yes, your financial statements have a lot of red on them. It's okay. Buy more shares. When the market recovers, which it has done 100 times in 100 dips since 1946, you'll have even more growth than you would have otherwise. Retirees: Every dollar you liquidate from your investments right now represents a larger percentage of your portfolio than it did before. The shares are worth less, which means you have to sell more to generate the same income. Re-evaluate your income needs, buckle down on budgeting. Every dollar you can leave in your investment account will continue to grow exponentially. Take advantage of as much income that's NOT related to the market as you can and do your best to leave your investments as they are for a few months until the market can regain some ground. As always, talk to someone. Two heads are better than one. Feel free to reach out to me through Facebook, my website or pick up the phone and call. I'd love to talk to you and answer your questions!