Finding Peace of Mind amidst the Panic
It’s hard not to see the fear – it’s all around us in today’s financial markets. Seems like only yesterday we were in the “roaring 90s” with everyone expecting those 25-30% returns to continue (even though those numbers were so much higher than the historical 10-12%.)
Fear can impel you to reach for a solution, something actionable to make the bad feelings go away. In the stock market, that often means selling everything immediately. But before you take such drastic action, read on for three more rational ways to handle your current financial situation. Ways more likely to bring you some peace of mind:
- Re-visit your willingness to withstand risk
As the markets go up and down, what is your long-term plan? Don’t be like so many who determine their risk by what they are currently experiencing in the stock; taking risk when it goes up and pulling out when it goes down. Make a plan and STICK WITH IT unless your financial needs change.
- Review your goals and make sure your portfolio matches your needs
We all do it. We listen to our friends and neighbors talk about what they are doing with their money and decide to follow suit. DON’T! What’s right for them may not be right for you, no matter how good it sounds. Instead sit
down with your advisors to review what you own. If you discover that you are not on track, don’t be afraid to make any necessary changes in a down market.
- Try to withdraw less from your portfolio
Remember our newsletter about “Outliving Your Money”? We advised you to withdraw only 3-5% of your portfolio, in order to make it last over time. The fact is if you understand your spending levels, and keep the withdrawals to a minimum during rough times, you should be able to make it last!
For those of you with questions, feel free to call me at 203.966.2721. Also please visit my website at www.catherineaveryinvest.com
Please pass along this newsletter to friends and family to spread the word!
Catherine Maniscalco Avery
CAIM specializes in creating and managing customized and fully diversified investment portfolios for private investors.