When markets begin to fluctuate, it’s natural to feel uneasy and want to take action. However, in many cases, the wisest move is to pause and thoughtfully consider your options. Reacting too quickly can disrupt your long-term savings and retirement goals.
Staying the course and riding out the waves of the market is often the best way to preserve and grow your investments over time. Market volatility is normal, but your financial plan is built for the long run.
Make Sure to Stay the Course
Don’t keep all your eggs in one basket. One of the best ways to manage risk is by spreading your money across different asset classes within your portfolio. By having a diversified portfolio, it may help you mitigate losses as one of your investments may be underperforming while another may be performing well.
Keep an Eye on Your Time Horizon
Building a solid long-term financial plan—one that aligns with your future goals and retirement needs— can help you stay grounded during times of market uncertainty. When volatility strikes, it’s important to remember that you’re in it for the long term. Resist the urge to check your accounts multiple times a day. Trusting the strategy you’ve put in place can provide the peace of mind needed to ride out short- term market turbulence. With a steady approach, you can navigate even the stormiest market seas.
Explore Options Not Tied to the Market
The UNC System Retirement plans offers savings and guaranteed investment options that are not affected by market volatility. Utilizing these options to diversify your retirement portfolio may make sense, depending on your financial goals and circumstances.
If market volatility has you questioning your investments and their ability to support your long-term goals, now is a great time to meet with a Financial Consultant from TIAA or CAPTRUST.
A professional can help you review your goals, assess your current strategy, and ensure your portfolio is properly diversified to weather market ups and downs.