Riding the roller coaster through turbulent markets
You may feel like you’re on a roller coaster when turbulence in the financial markets causes fluctuations in your investment portfolios and retirement savings accounts.
But in turbulent times, it’s more important than ever to buckle in and stay on course toward your long-term savings goals.
Here are four tips to help you maintain perspective when world events are affecting the financial markets and the balances in your investment and retirement accounts are fluctuating:
- Think about the long term. One of the biggest risks we face over time is overreacting to events and market volatility, so tune out short-term noise. A long-term perspective is even more important during times of uncertainty.
- Resist the urge to act. Even though your savings and investments may have declined in value over the past few weeks or months, it pays to stick to your long-term strategies. Allowing emotions to drive your decisions could mean missing out on potential opportunities when the environment is more favorable.
- Keep contributing and saving. Although you may feel uneasy looking at your account balances, this is not the time to stop contributing to your investments or other retirement savings vehicles. Doing so could mean leaving valuable employer-matching contributions on the table. Further, if you reduce your contribution rate, you also reduce your ability to benefit from the magic of compound interest.
- Consult a pro. Boost your confidence in your long-term investment and retirement strategy by asking your financial advisor to review your plans and ensure that your current strategies make sense.
We can help
If you have additional questions about your savings strategies, visit one of our branches or call us at 1-800-288-3425.