The importance of patience during volatile financial times.
During volatile financial times, it is never more important to be patient in the market.
As COO and Partner at The Zandbergen Group, Letitia Berbaum AIF specializes in wealth management for families, widowers, and entrepreneurs. With over 20 years of experience in the financial industry, she is a trusted advisor for her clients, helping them to navigate their financial futures.
The stock market has been more volatile than usual lately, leaving many investors wondering what to do with their portfolios. Should they sell? How long can they sustain the unpredictability? Here are a few things I share with my clients who are saving for retirement: Markets ebb and flow. The key to navigating the ups and downs is to learn to master yourself and your decision making during times of market volatility while evaluating risk. Make decisions based on wisdom, not emotion. Learn to lean on your trusted advisor. They can remind you of sage wisdom to help you see the forest while you’re walking among the trees.
It can be difficult to stay calm during volatile periods in the markets, especially when economic terms like “inflation” and “recession” are being thrown around constantly. For some people, the instinct is to sell everything and save as much money as possible. However, this knee-jerk reaction doesn’t take into account the bigger picture and usually doesn’t help investors achieve their long-term financial goal of retiring comfortably.
If you're feeling anxious about the market, here's a helpful analogy. Just like a plane ride, the market has a starting point and an endpoint (retirement). And yes, there may be some turbulence along the way. But that doesn't mean you should jump off the plane or turn back around. Just hold on tight and continue to your destination. The plan may change along the way, but the endpoint doesn't have to.
It's important to remember to be patient as we navigate these uncertain economic times. Here are some tips to help you navigate any season of the market, from a bull market to a bear market, and from the Great Recession to the Covid-19 pandemic. By being patient and following these tips, you can weather any economic storm.
It's important to stay connected with your financial advisory team in order to stay on top of your finances. They can help you make smart decisions with your money and keep you accountable.
Your personal investment advisor and their team can be a wealth of knowledge. They know your goals, they know your direction and, most importantly, they’ve likely weathered volatile market conditions before. This is why it’s important to have a relationship with your advisor and their team – they can offer guidance and support when things get tough.
Making sure you are working with a team of seasoned professionals is crucial to ensuring your success. Focused advisors will set solid, reasonable expectations at the beginning of your relationship and check in frequently to make sure you are on the right path. During turbulent times, tenured advisors know to communicate more often with you, which can help provide peace of mind.
It's important to remember that as an investor, you should always be involved in the process. Never be afraid to ask questions, and make sure that your trusted advisor is always available to answer any concerns you may have. By being active and informed, you can help ensure that your investment decisions are sound and profitable.
When making decisions, it is important to try to avoid letting emotions get in the way. This can be difficult, but it is important to try to stay logical and objective.
When markets are volatile, it's important to stay calm and focused. Look for opportunities that could be profitable, and listen to your financial advisor. Don't make decisions out of fear, as this rarely leads to good outcomes.
It's important to have a strong relationship with your financial team, including your accountant. They can provide valuable insights and help you make sound decisions when it comes to your finances.
It's important to have a financial team that you can rely on to give you the best advice for your unique situation. Your financial advisor is just one part of that team - your accountant can also play a vital role. They can suggest the best tax strategies and their respective benefits that you can take advantage of during the market's ebbs and flows. By working with a team of professionals, you can be confident that you're making the best decisions for your financial future.
As you enter the workforce, you will likely be offered a variety of benefits by your employer.
I believe that during times of market turbulence, it is best to continue contributing to your 401(k) plan. By doing so, you are essentially buying at new market lows, which can provide greater opportunity for growth in the long run. Additionally, there is a tax deferral that occurs when you contribute to your retirement accounts, which can lower your overall tax liability.
It can be easy to get caught up in the day-to-day fluctuations of the stock market. However, it's important to remember that these fluctuations are normal and to stay focused on your long-term financial goals. By staying informed and working closely with your financial advisor, you can weather any market volatility and come out ahead in the long run.
The information provided in this paragraph is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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