Market volatility has the potential to erode your net worth. You can take steps now to help insulate your wealth against future market fluctuations.
Market volatility stirs the emotions.
It’s hard not to react when markets make sudden, large moves. Greed and fear are natural human emotions that, if given free rein, can lead investors to buy high and sell low. That can be a recipe for wealth destruction.
Planning is the antidote to panic.
The time to handle market fluctuations is before they happen. Planning starts with an understanding of how your portfolio will react to volatility, and then making moves to restructure your wealth to fit your risk profile.
Asset allocation is key.
Diversifying your investments across a broad set of asset types is a central feature of your wealth planning. Knowing your tolerance to risk, stage of life, and need for liquidity should shape your asset allocation so that you can tolerate volatility without it triggering sudden, unplanned reactions.
Your financial professional has planning tools.
When you work with a skilled wealth professional, you have access to planning tools that show how your portfolio might react to various market scenarios. Together, you and your financial professional can restructure your portfolio to match your risk profile. A properly structured portfolio will help you resist the knee-jerk impulse to do something when markets jump.
Replace concern with confidence.
Call or email me today and I’ll work with you to develop a custom plan that will help you manage emotion through all market environments. Together, we’ll reorganize your assets to help provide confidence in periods of market volatility.
There is no guarantee that a diversified portfolio will enhance overall returns or out perform a non-diversified portfolio. Diversification and Asset Allocation do not protect against market risk.
This material was prepared for Zach Carothers and does not necessarily represent the views of the presenting party or their affiliates. This information has been derived from sources believed to be accurate. Please note—investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting, or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax, or legal advice and may not be relied on for the purpose of avoiding any federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
Securities and advisory services offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL Financial affiliate, please note LPL Financial makes no representation with respect to such entity.
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