Prepare For The Next Market Correction
Many people have a large percentage of their investments in stocks and stock mutual funds, and this has, for the most part, served them well. Stocks have recently been on a roll – indeed booming – and many are near 52-week or even all-time high points.
Some market mavens think the market is quite extended. Should you do anything to prepare your portfolio for the next leg down? If questions like these keep you up at night, perhaps it a good idea to contact a professional financial advisor Wyckoff NJ.
Consider Your Average Joe
Joe has been fortunate. Now 57 years old, he has been employed by a firm with a 401-K since he was 25. Carefully investing a fragment of his pay biweekly into stock mutual funds, he has built up quite a nest egg.
He has read about bad markets, though, and is concerned that he could lose a substantial portion of his hard-earned retirement money. He would like to re-evaluate his plan but is somewhat perplexed as to what to do.
Some Steps To Think About
If you are like Joe, then the following are some steps you might like to consider taking:
- Review Your Stock Allocation. You may find that your original allocation plan has gotten out of whack. Consider paring back to a more reasonable asset allocation.
- Think About Alternate Income Sources. If you are really concerned, then consider additional income opportunities, say from a small business, that will help you gain income once retired
- Above All -Don’t Panic. The human mind can become flooded with thoughts that can lead to poor decisions, especially with money matters. Sometimes it’s best to simply stay the course.
Your best bet is to consult with an expert if you have difficulty with these concerns. A qualified competent financial planner will give you peace of mind and help you stay on firm financial footing.