Few phrases are more dreaded in personal financial management than “market volatility.” If you’re like most people, the urge to call your financial advisor gets stronger when any of the leading indicators make a jump (in either direction).
What you probably already know – but find difficult to accept in a volatile market – is that turbulence does not automatically signal a need to shift strategies.
Although we have enjoyed a period of relative stability in most financial markets, investment advisors understand that nothing should be taken for granted. If you only think about talking to your financial planner when the threat of market instability rises, these tips might be for you.
Make a Preemptive Phone Call to Your Financial Advisor
Market swings happen – sometimes frequently. But, after a longer period of stability, it can be tempted to let down your guard. No matter how much you follow trends or listen to expert opinions, world events can bring on volatility with little warning.
If you haven’t spoken to your financial planner in a while, it’s probably a good time to schedule a meeting. Your investment advisor can offer you insight about what might happen in the market in the short-term. They can also help you take a walk down memory lane, to see how you fared in previous periods of volatility.
More importantly, however, you can explore how well prepared you are, should something unexpected occur.
Keep a Cool Head Should Volatility Strike
Whether you’re primarily invested in the equity market or the debt market – or a little of both – short-term volatility is unlikely to have a profound effect on your portfolio.
What this type of movement can do, however, is upset the apple cart in your own world.
Before you panic, pick up the phone and call your financial advisor. Sometimes talking through things with an expert (especially someone who knows your personal financial picture well) is the only way to put your mind at ease. If changes are in order, you can discuss those. Or, if taking a “wait and see” approach is best, at least for now, you can feel more confident after talking things through with an experienced professional.
Update Your Financial Plan When Necessary
One of the best ways to remain resilient during times of unexpected market fluctuations is to keep your financial plan up to date. That way, if the market does tilt one way or the other without warning, you will be as prepared as possible.
Keeping your financial goals and strategies up to date is the best way to ensure resilience, no matter what might happen for you personally or for the financial markets. Our proprietary financial planning process, the Flywheel Effect™, helps ensure that your life remains as simple as possible, even when external events call for special decision-making events.
Resource Planning Group is committed to help you preserve and protect your assets, no matter what happens in the world.
DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.
Leave A Comment