Nov 9, 2018
We talk about what to do when the market goes down and how to
prevent getting hit with big losses. We also talk about when to
buy, sell, and rebalance your portfolio. We also discuss what to
look at when you get your retirement plan statement.
Main Questions Asked:
How can I create a portfolio that will avoid big losses when the
market takes a hit?
If the market is going down what should I do with my 401(k)?
What should I look for on my retirement statement?
Key Lessons Learned:
- We have been due for a market correction. I don't know if it's
going to happen right now. There are several things to acknowledge
and realize. The market was up a little for the year as of the end
of October. A lot of stocks were already down when we got hit with
this October volatility.
- Five tech companies make up 20% of the S&P 500. You have a
well-diversified portfolio you’re not weighted like the S&P
500. You're not gambling on technology stocks.
- With our clients we get the diversification right. We spread
money across different asset classes and have some of the money
safe. If the market drops 20% in theory your investments will only
- If you're concerned about the market going down or a bear
market beginning call us or another financial advisor and make sure
that your portfolio is diversified correctly.
- We believe in getting a reasonable rate of return but also
building principal protection into the portfolio.
- If you're still working, and your 401(k) is going down it might
be a good time to up your contributions.
- Buy when things are cheap and sell when things are
- This also might be a good time to rebalance your
- What funds are you invested in? Have you based your portfolio
on recent performance or long-term goals?
- If you are over 55, it's a good idea to just earn a certain
interest rate on principle to offset volatility in the market.
Is it Okay to Have Volatility If You're Not
- The price of keeping up with inflation is having some
volatility. You need to have some portion of your portfolio exposed
- If you don't have a plan, you need to get a plan. We have a
complimentary money map retirement plan that can help you create a
portfolio that guards against volatile markets.
Taking the Mystery Out of Your Retirement Plan
- How reliable are Income projections? They're not reliable.
Projections have all kinds of variables.
- What's up with the asset allocation summary? There are pie
charts that show each individual fund and how much money you have
in each of those funds. Pie charts that show different asset
classes are more helpful.
- This just shows where you are exposed in different asset
classes. You don't want to be overexposed in any area.
- People don't always see the fees listed on their 401(k). In
many cases, it's not on your account but the administration fee is
in there. There are other fees and costs that are difficult to
calculate. Cheapest is not always best, but you need to understand
- Things you should be aware of in the fine print. It doesn't
hurt to read the fine print and try to understand how things
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!