Local Finance

Managing Stress Related to Volatile Markets

In today's environment, where the media can provide you with minute-to-minute market updates, it's easy to get stressed out by short-term negative trends. But rather than taking drastic measures that may not even be necessary, it's often more sensible to maintain a "tried-and-true" approach to investing. This involves:

Putting money to work regularly -- Most of us do this by directing part of our income to our retirement plans through work and other investment vehicles.

Owning a diversified mix of investments -- You should choose an asset allocation strategy that is appropriate for your risk tolerance level, investment objectives and the time you have available for your investments to grow.

Holding for the long run – to help avoid the potential losses from short-term market swings, you may be better positioned for success by maintaining a long-term stance with your portfolio.

If you have a goal that is approaching within five years, consider investments that provide safety of principle and liquidity for that goal.

Cover the "what ifs." That means having at least three to six months of committed and discretionary expenses on hand in a cash reserve. Pay special attention to being adequately covered with your health, life, disability, property and casualty, and long term care insurance so if the unexpected happens, you can financially navigate through the situation.

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