To invest or not to invest? That seems to be a bruiting question.
There has been a ton of gossip about the stock market being a bit out of control lately.
Perhaps you hesitate to invest or get more involved with investing because of the very unpredictability of the stock market.
Fact check: Having a fluctuating market is kinda the nature of the beast and best not to get freaked out by it. Rather, get smart.
In today’s episode of Financially Wise TV, I share with you the 3 questions you need to ask yourself to play it smart in a volatile market.
QUESTION 1: Did the goal for your money change?
You may have originally wanted your investments for retirement, but now you need liquid cash for some other pending finances or big purchase. If the market is fluctuating, you may want to revisit your goals and see what makes sense for your current financial vision.
QUESTION 2: Did my risk appetite change?
You may have taken high risk in the beginning but now you are feeling more conservative. This might adjust your investment strategy. If your risk tolerance has shifted, reevaluate your investment portfolio. A reminder is to come from a non-emotional place, but rather a strategic place. Often in this situation, a financial advisor really helps to give an unbiased opinion.
QUESTION 3: Is your money allocated in a diverse portfolio?
Balance your investment model on a regular basis, making sure you are diversifying your portfolio according to your goals and risk levels.
To recap… do your homework and make sure your risk level, goals, and portfolio diversification are in order. Then, ride the wave of the up-down stock market, that’s what it's supposed to do!
I’ll leave you with this Warren Buffet quote, “Be fearful when others are greedy. Be greedy when others are fearful.”
Now, I’d love to hear from you:
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