Mar 12, 2018
Volatility in the market is here with a vengeance. We knew that
sooner or later that this would happen and today we learn how to
position and protect your investments in a volatile market.
Main Questions Asked:
- What decisions should you make right now?
- Does your portfolio match your tolerance for risk?
- Is your portfolio diversified and in balance?
Key Lessons Learned:
How to Position and Protect Your Investments in a Volatile
- Understand diversification. The pain and consequence of not
being diversified is very evident. Have a portfolio that matches
your tolerance for risk. Don’t compound your losses by letting your
emotions rule your actions.
- Understand the how and why of rebalancing. If we have one stock
that does great, we might fall in love with it and not want to sell
it. It could end up being 38% of our portfolio and put our balance
out of whack. Rebalance to keep your risk from going too high.
Discipline rebalancing - once a year. Trigger based - when your
portfolio becomes out of balance. Life stage rebalancing -
rebalance during different life events and stages.
- Everything starts with a comprehensive game plan. Having a plan
removes fear, and knowing you have a plan when things get rough
alleviates panic. Start with a comprehensive plan with a quality
advisor. You need to know what to do with your money. A plan is
everything working together not just a magical number. It also
needs to be adjusted when things change.
- Be sure to have a bulletproof income plan. A lot of people have
an investment plan, but not an income plan. Successful retirements
are based on the ability of assets to generate consistent income
through retirement. Your ability to generate income will dictate
your lifestyle during retirement.
Links To Resources Mentioned
Money Map Retirement Review
Thank you for listening!