Financial Resources

While you can’t control how the stock market behaves, you can control how much you save and how well you maintain your investment strategy through different market conditions. Maintaining a diversified portfolio  may give you a better chance of achieving your financial goals than if you move money around based on short-term market factors.

A recent study found that making drastic changes to your retirement strategy in response to big losses—such as switching to a more conservative portfolio could ultimately make it more difficult for you to achieve long-term financial security. That’s because a conservative portfolio does not offer the same growth potential that an aggressive portfolio does.

With the economy and stock market declines all over the news right now, it’s understandable if investors’ nerves are frayed. But, aggressive portfolios are built on the premise that investors need to plan for a 30-year retirement that will last well into their 90s. There are many important factors to consider when planning for retirement, including your expected expenses, sources of income, and available assets. Before investing in anything be sure to weigh your objectives, time horizon, and risk tolerance.

If you had a good investment strategy six months ago, chances are it’s still a good investment strategy. Do your best to stay calm and focused and to stick with it.