How does dropping the largest non-nuclear bomb in U.S. history impact your finances? Let's get practical and look at what you need to know and how you can best respond.
A quick recap of the huge global news happening over the past weeks!
- There is incredible tension in Russia because of the U.S. bombings in Syria.
- The tension between the United States and North Korea continues as North Korea experiments with their nuclear capabilities.
- Trump has met with China, and he continues to say that the U.S. is willing to consider military action in North Korea if nuclear testing proceeds.
On multiple fronts, there is tension and possible military action looming. Let's get practical with how this impacts you and your financial future.
But after last Thursday's massive bomb drop, we saw only a SMALL market drop. How will the global landscape impact my financial future?
There were only small changes to the market, but where we did see a significant difference is the volatility index.
The volatility index measures the concern of the market and its certainty within the next 30 days.
The volatility index spiked 27% last week. There are concerns, but nothing concrete has happened, yet.
That reality creates a lot of uncertainty.
What can you do to bring peace to your finances and conqueror uncertainty?
Here's what I see most often:
When people feel uncertainty, it's easy to be reactive. High tension can lead to big impulse decisions.
If there is a drop in the market over the next 30-days, your knee-jerk reaction may be to pull your money out in response, but you can't act emotionally.
Reactive decisions will only hurt you in the long run!
The best thing you can do is to immediately create a plan that is prepared for a drop.
If you knew right now that the drop in the market would hit in 3-weeks what would you change about your portfolio?
I met with William. We did an MRI to deeply measure his amount of risk and exposure. After we did this, we learned if the drop would have hit he would have lost a significant amount of his portfolio.
We moved William down to about 60% in stocks but needed 40% to be safer.
William immediately felt more confident in his financial plan.
But, then we took it a step further. This is where not only William lives with peace of mind today but also has a plan that gives him confidence in his future.
William and our team set up a plan to regularly rebalance his portfolio. Now, no change in the market will impact the likelihood of him reaching his dreams for the future.
How do you feel about your future? Are you more like William before our conversation or after when he had full financial confidence in his plan?
These big headlines point towards big volatility in the market. Be ready.