How to Survive Stock Market Volatility
Preparing for the future takes a little knowledge, a lot of patience with and a generous portion of hard work. Saving money to fund your retirement isn’t as easy as it was 40 years ago. Now you must know how to and how much to invest in order for your savings to grow substantially enough to cover a retirement that could last twenty-plus years. As markets fluctuate and turn down-right scary, fears about the future arise. However unsettling, a volatile market doesn’t have to be the thing of nightmares. The following information will help you weather market volatility:
• First, what is market volatility? A volatile market means stock and commodity prices rise and fall sharply over a short period of time. Think of it like the ocean, you want calm waves that move you toward your location. A volatile market is like a storm; sharply rising and falling waves that make investors uneasy and more prone to shed stocks.
• How does my money survive? Easy, patience. Volatile markets will even out over time. Will your portfolio look the same? Probably not. However, this isn’t the time to panic and sell, though you may need to drop consecutively poor performers in favor of more steady options. Being patient is your best option in the long run. Let it ride out and give your portfolio time to regain momentum. This may take a long time, so patience is the name of the game.
• Is there a way to avoid volatility? Short answer, yes and no. The bulk of investing options depend on stock market performance so get ready for a few bumps along the way. However, policies like linked benefit products and various annuities tend to offer a stable return even under stock market volatility.
• How should I invest? Starting small and diversely investing is a solid way to go. As mentioned before, choosing set investments like linked benefit products are a little safer and provide a nice payment over time. The best thing to do is research and decide where and how much you want to invest.
Nothing is as unpredictable as weather and the stock market. But planning for retirement doesn’t have to be scary. 3D Advisors Inc. knows how to help you and your money survive volatility and grow.