Last year, when the markets were miserable, my number one recommendation to my clients (and myself) was simply to not check your portfolio.
If you believe in the markets and the strength of the economy, you know and understand that downturns are typically a temporary occurrence. When you’re constantly looking at your portfolio and seeing it go down, down and down, you’re setting yourself up to make snap decisions based on bias and emotion, which isn’t in your best financial interests. It’s also not great for your mental health.
That’s one of the potential values that a financial planner can bring to the table for you — monitoring your portfolio for you during the rough times. They’re there to remind you about the long-term goals and to help keep you on track while things are bumpy.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The good news is that the clouds appear to be parting, and I’m looking at my portfolio again. The markets are still going up and down, which is to be expected, but we’re seeing an upward trend lately. As a financial planner, I’m giving myself permission now to start checking my portfolio again, because I think we’re moving in the right direction.
It’s something to keep in mind, in general: When the markets are massively down, don’t look, just keep trust that you’re investing in the long game and hold steady. When the markets are rebounding, go ahead and take a peek and enjoy seeing the numbers go up, because you’ve been patient.
I always like the advice “control the controllable,” and it works in this situation — you can’t control the stock market, but you can control your reaction to it. When it’s down, you should not look at it to avoid making panicked decisions. And when it’s up, if looking at your portfolio gives you hope, then by all means, enjoy taking a cautious look again.
Diversified, LLC is an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the SEC. A copy of Diversified’s current written disclosure brochure which discusses, among other things, the firm’s business practices, services and fees, is available through the SEC’s website at: www.adviserinfo.sec.gov. Investments in securities involve risk, including the possible loss of principal. The information on this website is not a recommendation nor an offer to sell (or solicitation of an offer to buy) securities in the United States or in any other jurisdiction.
-
The Role of the U.S. Dollar in Retirement: Is It Secure?Protect your retirement from de-dollarization, because “capital always goes where it is treated best."
-
Retire in France for Beauty and CultureFrance offers a great history and a slower pace of life for retirees. At times, it can feel like stepping into a postcard.
-
To Stay on Track for Retirement, Consider Doing ThisWriting down your retirement and income plan in an investment policy statement can help you resist letting a bear market upend your retirement.
-
How to Make Changing Interest Rates Work for Your RetirementHigher (or lower) rates can be painful in some ways and helpful in others. The key is being prepared to take advantage of the situation.
-
Within Five Years of Retirement? Five Things to Do NowIf you're retiring in the next five years, your to-do list should contain some financial planning and, according to current retirees, a few life goals, too.
-
The Home Stretch: Seven Essential Steps for Pre-RetireesThe decade before retirement is the home stretch in the race to quit work — but there are crucial financial decisions to make before you reach the finish line.
-
Three Options for Retirees With Concentrated Stock PositionsIf a significant chunk of your portfolio is tied up in a single stock, you'll need to make sure it won't disrupt your retirement and legacy goals. Here's how.
-
Four Reasons It May Be Time to Shop for New InsuranceYou may be unhappy with your insurance for any number of reasons, so once you've decided to shop, what is appropriate (or inappropriate) timing?
-
Before You Invest Like a Politician, Consider This DilemmaAs apps that track congressional stock trading become more popular, investors need to take into consideration some caveats.
-
How to Put Together Your Personal Net Worth StatementNow that tax season is over for most of us, it's the perfect time to organize your assets and liabilities to assess your financial wellness.
