There is no sugarcoating the issue; sometimes the market enters choppy waters, which can cause panic to many. Watching the swings of the market might stir up questions such as:
“What does this mean for my retirement account?”
“Should I continue to contribute?”
“How will the market volatility affect my ability to retire?”
To the above questions, we would like to remind and assure you of the importance of continuing to contribute to your retirement accounts in face of market volatility.
With each contribution into your plan, you are taking advantage of the market lows and highs by buying a fixed dollar amount on a regular basis. This practice, also known as dollar cost averaging, can protect you against market fluctuations, allowing you to focus on long term asset accumulation.
Sticking to your risk tolerance and game plan, while consistently purchasing shares, is very important for long term growth.
When share prices are low, you are essentially buying shares on sale, which will be advantageous to you when prices increase.
As you accumulate your wealth, remind yourself that we will go through several up and downs of market cycles, so it’s important to take your risk tolerance into consideration as you develop a long-term strategy.
Financial and investment decisions don’t have to be stressful. At Legacy Next, we offer trusted financial forecasting and investment management made simple. Get more information on how you can grow smarter for your future.