In a recent Gallup survey, half of the investors report market performance affects their daily mood.
While market volatility can’t be prevented, here are some things you can do to make it easier to stomach.
Consider Your Risk Tolerance
Your time horizon and willingness to endure market fluctuations make up your risk tolerance.
As retirement gets closer, this often changes. Your investment strategy should reflect how much risk you’re willing to take and which risks worry you most.
Action Step: Review your risk tolerance to see if it has changed.
Take Control of Your Finances
Carrying debt into retirement can add further financial stress.
As you wind down your working career, it’s a good idea to review your personal financial situation and take steps to eliminate as much debt as you can.
Action Step: Review your personal finances to see if there are expenses you could cut and/or financial obligations you could pay off.
Don’t Take Unnecessary Risk
If market value declines cause you to lay awake at night or make you extremely anxious, this is a sign you may be taking more risk than you should be.
Action Step: Review your portfolio to determine if you have investments that exceed your risk tolerance.
Work With A Financial Professional
Even if your retirement date is a year or more away, seeking guidance from a financial professional can help you formulate a plan so that you’re prepared when markets become turbulent.
Remember, it’s natural to feel worried when there are shifts in the market. Even the most experienced investors who are familiar with market volatility react to market changes. A professional can help keep your emotions in check and help make sure your investment plan stays on track.
For More Information
If you’d like more information on evaluating your investments for risk and other factors, you can use our innovative asset rating scale, LiSERT, and learn more about building the Ultimate Portfolio here.
If you’d like to talk to an Aspen Creek Financial advisor to help you come up with an investment plan that works within your risk tolerance, please contact us today.