Last Week of the DOW Should Teach You This

We just saw one of the longest market drops in over a decade. If it would have gone just one more day it would have been the worst we've seen since the 70's. Why did it happen? Trump's failure to pass the health care bill.

But more importantly, what does this point to? And what does it teach you moving forward?

 

 

 

Last week points to one thing: market volatility.

 

The reality is this dip wasn't catastrophic. It was a slight correction and a little drop. But, that won't always be true. 

Are you prepared for how Trump's Presidency will affect the market?

 

Maybe your story is like Barry.

 

Barry and I met a couple years ago. He was in his 60's and nearing retirement. We got along great!

After we met over dinner, discussed his dreams for the future and talked about his portfolio; we agreed to adjust his risk.


We majorly adjusted his risk. 
 

Over 90% of his portfolio was in the market and in a majority of SMP 500.

Barry, like many clients I see today, was confident he was invested in strong companies and not holding a severely aggressive amount of exposure.

But make no mistake it was aggressive. And it was even more of a HUGE risk because of how close he was to nearing retirement.


Remember: this was a couple years ago. Recently, Barry called me again.


He called me and was questioning what we were doing, saying "We're missing out on big growth here."

And the thing is he's right.
 

Barry would have more money in his account if he would have continued to stay aggressive.

 

But, as a person in his 60's, the additional wealth is nowhere near as important as the possible devastation he would feel in his retirement if volatility had struck sooner.

Barry is currently growing his wealth at a rate with a risk-tolerance that matches his goals for the future. Could he be growing his wealth faster? Yes. Is he able to have peace about his future? Yes.

 

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What Are Your Goals for the Future?

 

If your holdings are in equities or stock, you need to immediately address your risk.
 

This week has been a pain-free lesson in market volatility, but the next lecture may not be quite as kind of a teacher.


This is not to scare you but to prepare you.

 

We can determine the precise amount of risk level that benefits you.

 

Our team can offer you a plan that gives you immediate confidence and peace of mind rather than living with stress and worry. Get practical financial advice about your situation by reaching out below.