5 Ways for Market “Rough Riders” to Prevent Saddle Sores
Before he became president, Teddy Roosevelt was part of a volunteer cavalry known as the “Rough Riders”. I often think of that name when the stock market enters periods of volatility, common in the month of October. We, as investors, are “Rough Riders” as we watch the ticker go up and down. So, how do we keep from getting “saddle sores”?
- Stay in touch with your financial advisor. Your advisor is in touch with analysts and economists and can help you wade through the “noise”. It’s important to stay informed - but becoming “obsessed” with 24 hour news programs might cause unnecessary anxiety. A conversation can help put things in perspective.
- Come in for a new or updated financial plan. This is a great way to review your goals and objectives, risk tolerance, and short and long term needs. Having this thorough “roadmap” can be comforting in navigating more unstable market terrain.
- Remember, it is only a loss “on paper” and only a realized loss if you sell. A sharp market sell off may turn into a signal for a buying rally as the “buy low, sell high” principle comes into play. Your financial advisor may assist you with strategies which help to provide some downside protection.
- Consider your time horizon. If you have long term goals such as retiring in 10 years, you have time to digest trends. Don’t panic in the short term.
- Don’t compare yourself to others. Even two people with the same job, family size, income, and other factors can have different goals, tolerances for risk, etc. Your financial advisor is here for YOU, tailoring advice and portfolios for YOU. Your co-worker’s best friends’ cousin’s brother in law is not the benchmark for YOU.
Move over, Teddy Roosevelt, the Rough Riders are charging forward.
I am pleased to assist you, your family members, friends, and colleagues and offer a complimentary first consultation.
The opinions expressed are those of the author. Seek advice from a qualified professional before taking any action concerning your finances.
Todd A. Slingerland, CFP®
6 Tower Place Albany, NY 12203 (518) 867-4000 x105 [email protected]