Stick to the Plan
Submitted by Mustard Seed Wealth Management on April 9th, 2020
Riding the highs, and experiencing the lows, it is the way of the investment market. However, what if we told you that the key to sound and quality investing is learning how to keep it cool when the market is in turmoil? In this article, we are going to look at some of the tools that can help you manage your emotions and expectations during market uncertainty.
The final post in this three part series is what to do during the panic. Here is my section answering that question briefly and succinctly. We are monitoring client portfolios and will make recommendations when appropriate for you.
While it is too late to change what we did before this episode, it is helpful to think through what prudence looks like in investing. Right now, in the middle of the downturn, it is good to reflect on what your risk tolerance actually is. Here is the next section in my chapter on preparing for a pull back.
In the opening paragraph to a chapter in my new book on financial planning, I wrote the following just a few short weeks ago:
Anytime a person makes a decision to invest or save his money, he or she has probably formulated an expectation of how much they will get back at some time in the future. For most people, the expectation is that they will receive more than what they put in after a period of time. Some people will expect to get back no less than what they put it in, while others are willing to