Over the last few weeks with continuing market volatility, I have been reading more about those close to Retirement worrying about how the next “Bear Market” will impact or destroy their retirement goals and dreams. There was even a recent piece from MarketWatch titled “The next bear market in stocks will spark a retirement crisis”. I even commented on it on STA’s Financial Planning Twitter site that I blog to:
I completely understand that concern…but instead of “worrying” about it, take action! At STA Wealth we have put together an investment and financial planning process specifically created and working towards helping our clients confront these concerns with a proactive Retirement, Financial Planning and Investment process.
To see our process, check out this video: Financial Planning Process
Once you check out the process, we have a few articles that may help you make better (and less emotional) decisions. Remember when you invest with emotion, you deal with “fear and greed”. If that is the case, you typically buy on “greed” (buy high) and sell on “fear” (sell low) – exactly the opposite of what you want to do to make money (you want to buy low and sell high). If you want to make better decisions, read these articles (click on hyperlinks for the full article):
- Portfolio Stress Test: If you want to see in advance of a correction, how your Portfolio will react, perform a portfolio stress test.
- Hurdle Rate: Know your hurdle rate. Make sure that regardless of a correction that you can still beat your “hurdle rate” over your lifetime. That is the minimmum rate of return you need to earn to meet your goals and spending needs without running out of money.
- Eleven Ways to Stay Sane In Crazy Markets: In order to keep your Financial Plan on track, you need to have a sound and disciplined investment plan. That sounds easy and logical, but as Stephen Covey said, “Common sense is not always common practice”. Keeping your cool can be hard to do when the market goes on one of its periodic roller-coaster rides. It’s useful to have strategies in place that prepare you both financially and psychologically to handle market volatility. Here are 11 ways to help keep yourself from making hasty decisions that could have a long-term impact on your ability to achieve your financial goals.
- Monte Carlo Stress Tests: Perform a Monte Carlo Analysis and stress test your entire financial plan to help assure that you are in the best portfolio mix to help you reach your goals and objectives regardless of short term market conditions.
- Retirement Survival Guide: Update your Retirement Plan to make sure that you will be on track regardless of market conditions so that you can survive and thrive in retirement.
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Financial Planning and Investment Advice offered through STA Wealth Management (STA), a registered investment advisor. STA does not provide tax or legal advice and the information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters or legal issues, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances. These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable—we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice