PLAN. DESIGN. IMPLEMENT. REVIEW. REPEAT.

As we all are aware, equity markets are experiencing a new cycle of volatility after the rocket ship returns of 2019. When there are the kind of market swings we have seen recently, even the hardiest of investors can get nervous. This is the time to take a deep breath and review your goals & objectives, your financial plan, and your investment strategy.

Each and every client we work with goes through some form of financial planning. The type of planning and financial focus generally differs by age bracket. Focusing in on your overall financial plan will help guide your investment decisions in markets – whether strong or challenging.

Strategy & Considerations By Age Group 

20s to 30s: Building the Foundation

Investors in this age group are in an accumulation mode. As will all investments, you should make sure that you have measured your personal risk tolerance appropriately. With the anticipation that retirement funds for this group will not be needed for 30 to 40 years, the best strategy is to stay the course.

40s to mid 50s: Peak Complexity

We are often saying to those we talk to that a 45 year old person’s working life is more than half over. A scary thing for my fellow Generation X-ers. Our Gen-X peers are also often arriving into peak income and peak spending mode. Of course making sure you have the right investment portfolio for your goals is crucial…but a cash flow strategy to maximize savings and focus on retiring debts is arguably more important.

55-65: T-Minus 10 Years or Less to Retirement!

Now the margin for error is more narrow and your time frame is shorter. No matter the market environment, your investment objective should be different from your mid-career years. Make sure that your risk has been lowered over time and cash reserves are higher as you get ready for retirement.

65+ Partially or Fully Retired

In this category, preservation and income should be at the center of the discussion. The complicated issue for our new retirees is that the days of the 5% Treasury (let alone the 2% Treasury) are long gone and finding conservative growth is more complicated than ever.

So…what do I do – right now?

Regardless of your age group, there are some important guidelines to follow during times of market volatility. The steps below are analogous to a flight plan. We have a starting point, a destination, a set of tools to get us from point A to point B, and there are many connecting flights to get to point B! What does our shuttle captain suggest we do?

• Review your PLAN and see if the goals and “bullseyes” you’re saving for have changed (this goal change may call for an adjustment to your plan & strategy)
• So long as your strategy has been carefully DESIGNED – stay the course
• Trust in the goals-based investment strategy you IMPLEMENTED
• REVIEW your plan periodically – regardless of market conditions
• REPEAT steps above!

 The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.