Market Volatility - what should I be thinking?

Obviously we are all watching what is happening in the market and how it affects our finances and retirement. Many are concerned as to what to do in this environment of volatility.

As I mentioned to a client last week – “This is your money and obviously we will do whatever you want” Most people however have engaged SageView Advisory for advice, and although nobody can predict what the market will do on a day to day basis, I have included below some information on our thoughts and perspectives.

Every client that we have has unique goals and circumstances and timelines, so please feel free to give me a call should you want to discuss your particular wishes.

Short‐term volatility is an accepted risk of investing, but wild swings in the investment markets can be downright unsettling. Before you react to market turbulence by changing your retirement planning strategy, please consider the following ‐ Markets are Resilient. Sure, there have been periods when the market has delivered losses. But over the long term, the stock market has trended upwards, recovering again and again from the disruptive, but ultimately short‐term, worries of economic crises and major world events.

Making hasty investing decisions based on market volatility has often proven to be an unsuccessful investment strategy. Buying into funds after they have risen significantly may mean “buying high.” Transferring out of lower‐performing funds may mean “locking in your losses,” making it more likely that you will miss the upswing that sometimes follows a downturn.

The picture below also discusses the benefits of following an asset allocation strategy, dollar cost averaging, and the importance of diversification during volatile markets.

Remember, saving and investing for retirement requires a long‐term perspective. Most financial planning experts agree that the best way to weather volatile markets is to determine your long‐term investing strategy—and then stay the course.

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