Hey guys Justin Goodbread doing an emergency update here on the stock market! So, February 5th, 2017 the Dow Jones it dropped 4.6% That is the worst single day in market history! Are you grabbing your babies and heading for the hills yet?
Let’s all just calm down. It’s going to be OK. Here are a few pointers to help keep you from running for the hills:
The stock market has hit so many all-time highs over the last few years. So we are due some down days, a few market corrections. I mean we’ve had 190 something all-time highs in this bull market series! Guys that’s a lot of ups!! Life is never a series of ups. We all experience some downs and the stock market is no different. For example, a flu diagnosis isn’t the end of the world, but it is time to reset and let your body heal. You will recover and be back up again and the market will too! That is what it does.
Look, I get it. Life is complicated and sometimes we have to make snap decisions. The market having a down day is not one of those times. Just because of one single day of frustration, you are ready to throw in the towel? You wouldn’t do that in your marriage. So why do it here?
Think of it like a shot across the bough from back in pirate days. They would shoot a missile or a weapon across the battleship to get your attention. So now that the market has you contemplating your future, look at your portfolio with your CERTIFIED FINANCIAL PLANNER™. Don’t do anything on impulse, but sit down and assess your goals. Step back and get control of your emotions. Be proactive, but not reactive. See what is working and what is not and decide with your financial planner if you need to make some changes based on two things:
Check your risk tolerance—Don’t call your planner in a tizzy. If you have set your portfolio to match your risk tolerance you may not have to do anything. However, take this time to double check where you are in life. It’s been some 8 1/2 almost 9 years that we’ve been in this Bull market and things have been on an upward swing. Perhaps over time you set things on cruise control and let the chips fall where they may. At the same time, life has changed and maybe you don’t need to be as aggressive as you have been in the past. Or it is possible you may need to be even more aggressive. The point is, that it doesn’t really matter what transpired with the Dow, the key is to make sure that your portfolio is in line with your risk tolerance and now is a good time to check.
Check your time horizon—If you’re dealing with retirement monies and you are in your 20s or 30s, go to sleep. Don’t worry about what happened. Just make sure you are invested where you want to be. However, if you’re in your 50s or 60s and retirement is in the next five to ten years, have a conversation with your financial planner. We don’t know where the market is headed – if it is a market correction or something else. You may need to make adjustments if you’re going to be using this money soon.
If you have questions, let me know! I answer real-time questions from various clients dealing with everything from the stock market to insurance to business. You can also check out our new Financially Simple podcast. It’s live on iTunes and various other outlets. I’m in the middle of a 40 episode series on, “How to Build a Business and Sell it for Millions”. So check that out.
Like always you can also connect with me on Facebook, Twitter, LinkedIn. And if you have a question, shoot me a message on one of my social media outlets. I’ll try to answer it here on a video or sometime in the future. Subscribe to our YouTube channel. There’s already over 200 videos on there now answering all sorts of questions.
Remember this is not investment advice… I’m not your personal financial advisor and if I am, give me a call to discuss your unique situation.
If you don’t have a CERTIFIED FINANCIAL PLANNER™ that is a fiduciary working for you, drop me a line and say, “Hey Justin! I need some help!” and one of her team members will reach out to you, set up a web conference or schedule an office visit. We will do our very best to get you on track.
If this event shook you up and you’re worried, remember the markets do crazy things. Now is the time to have a conversation with your planner. Life is hard. Life is complicated. Money doesn’t have to be. Let’s continue to make our lives Financially Simple. Find an advisor to guide you along the way.