The market had the biggest drop of the year last Wednesday.
And even though all economic data is positive with strong reports of growth, President Trump is unpredictable. This is not a political statement this is a financial reality.
Here's what you need to realize about retirement today whether you are close to retirement or just beginning to invest:
How Will The Drama in Washington And Market Fluctuation Impact You?
My financial advice is different if you are nearing retirement or if you are a young family starting to invest in your future goals.
Let's break it down, before the next new controversy pops up.
My Investing Advice If You are Close To Retirement
Of the clients I meet with, the most common flawed thinking is a version of market timing. If you've asked:
- When will the market crash?
- Should I wait to change my investments?
- Why would I adjust my portfolio now, it's doing so well?
You are guilty of relying on market timing, and this will more than likely end poorly. You have to assume the market will drop tomorrow.
If the market actually did drop tomorrow, how much would you lose?
Or, if it dropped, how reliant are you on the money in the market for your future income?
If most of your money is in a 401K or IRA and the market were to drop, you would be in trouble.
Although, the market is one component to look at when we evaluate your investments and retirement strategy. It's more about your whole situation.
How can you invest to be sure your plan for the future is not destroyed by a market drop?
I help people in every stage of financial preparedness create a comprehensive plan that looks at every factor of your finances so that you can feel confident in your plan for the future.
This is a plan that works when the market is up and when it is down. It is based on how much risk/loss you can handle to meet your goals.
Financial stress is a choice and you can choose to live without it. Let's talk, especially if you are nearing retirement within the next 15 years.
Now, Financial Advice for Younger People! What Should You Know About Planning For Retirement Today?
My biggest piece of advice is to use your greatest asset to your advantage: time.
Most young people are afraid to be aggressive with their investments. Why? You're planning for a goal 30 years from now, not three years from now.
The #1 advantage to being young is compounding interest!
If you are under 35 years old, God's investing gift to you is capitalizing on compound interest.
Your retirement account could drop by 40%, and it won't matter if you are invested in a healthy diversified portfolio.
If you are able to take a little more risk and invest wisely, it can pay off BIG in the long run. But, you can't just invest without knowing what you are doing.
My team uses scientific measurements to maximize your portfolio over time. My recommended strategy, just like those nearing retirement, focuses on understanding your risk. You have to embrace a mindset that accepts the "what if" a drop hits and sticks to the plan when it does.
If you can hold onto a risk level for a period of time you will win in the end.
My approach to financial principles are proven to work historically, and some simple coaching can significantly help you succeed.
Is Your Financial Portfolio Ready?
Regardless of where you are and how you feel about the health of your finances, you need to be sure a drop in the market won't wreck your plan.
You deserve to feel confident in your financial strategy.
Much of life's stresses are rooted in financial uncertainty. I believe you miss out on life when your finances are in chaos. But when life is being enjoyed most, and you aren't anxiously monitoring your wealth, you're often in a place of financial peace.
Life is about more than money and we can help you feel confident in your financial plan to reach retirement.