What can you do?
Remember… as study after study has shown…
Time in the market beats timing the market!
Still saving for retirement? Keep adding.
If you have a long-term time horizon you are in a strong position. Just keep adding money to your well-diversified investments. The longer the market is down, the more time you have to continue to add funds systematically through your payroll deductions into your company retirement plans, or through monthly investing into your personal or IRA accounts.
Siting on some cash? Maybe it is time to get it invested.
Remember buy low, sell high. And yep, this is what buying low can feel like! I liken it to exercising. I know that if I get up and go downstairs to exercise, it really is good for my long-term health. I will groan about doing it, find reasons not to, but in the long-term I know it is the right thing to do.
With that said, make sure to always leave yourself some emergency money in cash. And if you can’t hold your investments for at least three years, don’t buy. Stocks offer a high potential return, but investors usually need to be willing to hold on during period of volatility.
Currently in retirement?
Remain calm and sit tight. Know that when we meet regularly, we have reviewed your investment allocation and your fixed income component, so that there is a smart place to go for money during uncertain times.
Looking for a silver lining? Tax Loss Harvesting!
Somewhat simplified – tax loss harvesting is when you sell an investment in a taxable account (not an IRA or 401k) for a loss and use the proceeds to buy back a similar investment so that you can deduct the loss and save on taxes. You aren’t out of the market (thus not market timing) and your overall portfolio allocation remains the same.
There’s nothing for you to do – WE are on top of it if this applies to you.
