Mar 12, 2018
Volatility in the market is here with a vengeance. We knew that sooner or later that this would happen and today we learn how to position and protect your investments in a volatile market.
Main Questions Asked:
- What decisions should you make right now?
- Does your portfolio match your tolerance for risk?
- Is your portfolio diversified and in balance?
Key Lessons Learned:
How to Position and Protect Your Investments in a Volatile Market
- Understand diversification. The pain and consequence of not being diversified is very evident. Have a portfolio that matches your tolerance for risk. Don’t compound your losses by letting your emotions rule your actions.
- Understand the how and why of rebalancing. If we have one stock that does great, we might fall in love with it and not want to sell it. It could end up being 38% of our portfolio and put our balance out of whack. Rebalance to keep your risk from going too high. Discipline rebalancing - once a year. Trigger based - when your portfolio becomes out of balance. Life stage rebalancing - rebalance during different life events and stages.
- Everything starts with a comprehensive game plan. Having a plan removes fear, and knowing you have a plan when things get rough alleviates panic. Start with a comprehensive plan with a quality advisor. You need to know what to do with your money. A plan is everything working together not just a magical number. It also needs to be adjusted when things change.
- Be sure to have a bulletproof income plan. A lot of people have an investment plan, but not an income plan. Successful retirements are based on the ability of assets to generate consistent income through retirement. Your ability to generate income will dictate your lifestyle during retirement.
Links To Resources Mentioned
Money Map Retirement Review
1-800-757-0436
Thank you for listening!