With so much going on in the world today, it’s natural to feel anxious about the state of your finances. Staying focused on the big picture is important during periods of market volatility. Here are a few strategies to keep in mind as we weather this storm together.
Fluctuations are a normal part of the market cycle, but the long-term trend of the market is up. History shows that staying the course during difficult times can pay off in the long run, because market recoveries typically follow downturns.
Keep calm and stay invested
The choices an investor makes during a market decline can have a major impact on long-term goals. Investors who attempt to “time the market” may risk missing periods of exceptional returns. Considering the opportunity loss, it may make sense to remain steadfast in your investments and stay the course.
Manage what you can
Since you can’t control the markets’ ups and downs, what can you do to help minimize the impact on your savings? Reviewing your asset allocation and diversifying your investment options are two important actions you can take to help manage your investment risk.
Keep a long-term perspective
Over time, periods of high returns tend to offset periods of low returns. Holding investments for a longer time typically tends to lessen overall volatility. This may provide some reassurance during a market downturn.
Consider an emergency fund
A dedicated savings account for emergencies may help safeguard your financial future against the unexpected so you can remain financially secure if any large or unplanned expenses arise.
When it comes to market volatility, learning from past experience can help you navigate the present and plan for the future. At Krietzberg Wealth Management, we are here to help you navigate a rapidly changing world. Regardless of how the world continues to change, we’re here to support you as we face the future together.
Feel free to reach out to us if you need help.
Curtis Krietzberg, David Krietzberg, and Felicia Garland are registered representatives of Lincoln Financial Advisors Corp. Securities and investment advisory services offered through Lincoln Financial Advisors Corp., a broker/dealer (member SIPC) and registered investment advisor. Insurance offered through Lincoln affiliates and other fine companies. It is not our position to offer legal or tax advice. Krietzberg Wealth Management is not an affiliate of Lincoln Financial Advisors.
This material is provided by The Lincoln National Life Insurance Company, Fort Wayne, IN, and, in New York, Lincoln Life & Annuity Company of New York, Syracuse, NY, and their applicable affiliates (collectively referred to as “Lincoln”). This material is intended for general use with the public. Lincoln does not provide investment advice, and this material is not intended to provide investment advice. Lincoln has financial interests that are served by the sale of Lincoln programs, products, and services.