PYEONGCHANG 2018 | Getty Images
Imagine training your entire career for one moment, one chance to perform at your very best. You had your entire routine down, but somewhere along the way in your planning, you forgot to sharpen your outside blade of your skate. Next thing you know, you caught an edge on your final triple-axel and it cost you the gold medal. After watching last night’s events, I can’t help but compare the Olympic Games to retirement. It’s because these athletes, like yourself, spend their entire lives working hard and strategizing on how to achieve their future goals. With all of the Olympic craziness of late, now is the best time to go for gold in your retirement strategy!
Could your portfolio handle another financial crisis? Whenever an economic downturn occurs, people are tempted to flee the market, but this sometimes can be one of the worst things to do. While many are stressed any time they say a market downturn, market corrections and pullbacks are common occurrences that are bound to happen to any investor. Although not as common, major market declines are bound to happen to anyone who is investing for the long-term. That’s why it’s important to maintain a long-term outlook within your overall retirement strategy.
Warren Buffet once said, “Be fearful when others are greedy and greedy when others are fearful.” Unfortunately, when the market goes way up, people tend to follow the herd, get greedy and buy more. Warren suggests this is actually the time when you should be more “fearful” and sell. In contrast, when markets go down, people tend to be fearful and sell when they may be better off buying more. It’s important to try and leave your emotions out of the investing equation and to make certain that your portfolio is diversified according to your risk tolerance level. That means that you should have not only a mix of stock and bonds, but a mix within stocks as well. Certain investments like energy and real estate aren’t highly correlated with the market and may be helpful in hedging against risk as well.
Ultimately, if you’re investing for the long haul, then you might want to focus on time in the market more than market timing. Fluctuations and crashes happen, but those who can ride out the bear markets will be far better off than those who panic and flee. With a long-term outlook and diversified investment strategy, your nest egg can be secure enough to endure the roller coaster ride on Wall Street. Emotional decisions to leave the market in times of market volatility can seriously inhibit your nest egg’s ability and potential to last you throughout retirement.
There have been very few Olympic athletes who stood tall on the podium as their National Anthem played, and a gold medal was placed around their necks without a coach or trainer to thank for helping them achieve their goals. If it’s been awhile since your last financial review, then it might be time for a quick coaching or training session. CLICK HERE to request your complimentary, no obligation review and we’ll help to get your retirement strategy on-track for a gold medal!