In times of market uncertainty or changes, reminding yourself of your ultimate retirement goals is important. Here are some tips that can help you focus on staying on track for the long term despite the short-term fluctuations in the market:
- Implement Dollar-Cost-Averaging (DCA) When You InvestWhen you invest fixed amounts in intervals, it may reduce the impact of volatility. This allows you to participate in the market on a smaller scale over a certain period by spreading out your investment purchases, and minimizing potential bad market timing.
- Diversify to Cover All BasesInstead of being fully reactionary to the markets, making sure to keep your investments diversified can help mitigate the impact of a market fall of a particular sector or industry.
- Review & Rebalance Asset AllocationIf your portfolio is already diversified, its also a good time to make sure the allocations are still appropriate for your objectives and targets.
- Explore if Annuities Are Right For YouDifferent annuities may offer features and benefits that may be elected to serve your long-term income needs.
- Keep Some Liquidity for Flexibility & EmergenciesHaving some liquid assets available can provide additional flexibility during times of volatility. In fact, saving at least 6 months worth of living expenses is a good benchmark. It can cover any emergency expenses and provide general piece of mind during market downturns and financial instability.
- Keep a Positive Mental Attitude & Aim for A Long-Term OutlookMost importantly, it’s important to keep a positive mental attitude about your goals. Even with market ups and downs, focusing on the plan you’ve put into place, and having open discussions with your financial professional throughout the process can help you maintain a clear head and mitigate emotional reactions that can lead to making decisions that can potentially negatively impact your financial situation. When planning for your retirement, aim for a long-term outlook to help you make smart decisions for the future.
