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.
-
Visa Is the Worst Dow Stock Wednesday. Here's WhyVisa stock is down sharply Wednesday after the credit card company came up short of revenue expectations for its fiscal Q3.
-
Another Analyst Moves to the Sidelines on Tesla Stock After EarningsTesla stock is spiraling Wednesday after the EV maker's big earnings miss and Wall Street has been quick to weigh in. Here's what you need to know.
-
Confused by Annuities? Making Sense of the Different TypesMany investors aren't sure if annuities are a good option for meeting financial goals. Let's look at the different categories, along with their pros and cons.
-
Talkin' 'Bout My Generational Wealth: Baby BoomersWith retirement, each generation has different priorities and challenges. For Baby Boomers, it's a matter of ready or not, here it comes.
-
How to Avoid a Big Hassle if Your Financed Car Gets WreckedHow an insurance check is made out for repairs can cause a world of problems if the lienholder is left out.
-
Estate Planning Strategies to Consider as Election NearsAre big changes in tax laws coming soon? Not likely, but you might want to take advantage of higher estate and gift tax exemptions well before the end of 2025.
-
How to Get Your Money's Worth From Your Financial AdviserA good financial adviser will focus on how your financial planning and investment strategy align with your lifestyle and aspirations.
-
Think of Prenups and Postnups as Financial Planning ToolsThese contracts provide a clear framework for asset management and protection and are especially useful if you get married later in life.
-
Congratulations on Your Raise: Three Things to Do With ItWe're not saying you shouldn't spend it on a new car, but there are some considerations to guard against lifestyle creep and to help ensure a comfy retirement.
-
Check Off These Four Financial Tasks to Finish 2024 StrongThe new year is a popular time to set financial goals, but now is the ideal time to check how you're doing. Four tweaks could make a big difference.
