We all love looking at our retirement account statements when the market is up, but some people are scared to look at them when the market is down. We are all different – Some folk will check their statements on a daily or weekly basis, and others only when they get their quarterly statements and some only once a year.
Do I check my pulse each morning to see if I am alive? No, because although I know that I will die one day, I don’t intend on dying TODAY!
Here are some of the daily headlines recently – those in green are good days and those in red are down days and the black are days of not much movement.
- Stocks Rise to Four-Month High – 4/18
- Dow Industrials Close Above 18,000 – 4/19
- US Equity Rally Continues – 4/20
- S. Stocks Close in Positive Territory for Third Consecutive Day – 4/21
- Stocks Falter on Oil and Earnings Disappointments – 4/22
- Stocks End Mixed Last Week – 4/25
- Stocks Slip on Central Bank Jitters – 4/26
- Stocks Treaded Water Yesterday – 4/27
- S&P 500 Retreats Most in Three Weeks – 4/28
- Stocks Decline as Commodities Rally – Friday 4/30
- Stocks Rise on China Factory Stabilization – Monday 5/2
- Stocks Rebounded Yesterday – Tuesday 5/3
- Equities Weaken as Growth Concerns Resurface – Wednesday 5/4
On the 5th May the following companies reached their highest level EVER for their stock prices: Amazon, Mcdonalds, Johnson + Johnson, Home Depot, Pepsico
Today’s Headlines 19th May:
“Global stocks fell to six-week lows and commodities were down following the yesterday’s release of the minutes from the Fed’s last meeting as the US Dollar was pushed to a seven-week high. The S&P 500 index gave back this year’s gains.”
Some questions that I should ask myself before I panic or rejoice:
- When am I going to need my money in my retirement account? Is it in 5 years, 10 years, 15 years?
- Do I have a defined strategy and plan?
- On what due diligence am I basing my decisions?
- How am I rebalancing my account and when?
- What information am I using to make my rebalancing decisions?
- Do I have a strategy for when I withdraw my money because that could make a HUGE difference to my retirement income? (Our next newsletter will deal with Sequence of Returns risk)
- Am I guessing with my information or relying on Financial Entertainers on TV or basing my info on what my water cooler buddies are saying or is this all based on relevant research and strategic planning?
It is vital to have a PLAN for our financial future and then to stick to that plan, making adjustments as we go along based on well thought out strategies that match our unique set of circumstances and risk tolerances. Although watching the market on a daily basis might not always be good for our blood pressure, the “Set it and forget it” approach could cost us dearly too.
Whether it be for College Planning or Financial Planning, let’s PLAN
Dave Coen is CEO of College Planning America and a Registered Representative – Sageview Advisory
714-813-1703 davec@collegeplanningamerica.com
Apply for a College Planning America Scholarship