Pausing recurring contributions during market weakness
Selling your portfolio due to fear
During a market decline, many people tend to switch to cash because they feel anxious about seeing their account balance decrease. If your investments are in line with your financial plan and timeframe, it is best to hold onto them.By attempting to time the market by going to cash, you might miss out on the recovery and limit your potential for growth.
Trading in and out of positions
Accepting cookie-cutter solutions
When you are creating investment accounts such as 401(k) or IRA, you may be given recommended portfolios to choose from. Although these suggestions can provide some assistance, it is important to conduct a personal evaluation of your financial status and risk tolerance. This can potentially be done with the guidance of a fiduciary financial advisor.
If you continuously rely on default suggestions and choose investment options designed for others, it could result in lower returns that may not be suitable for your financial situation in the long run.
Attempting to time the market
Create a plan for achieving long-term financial goals and determine significant milestones to strive for in life. Collaborate with a knowledgeable fiduciary advisor to develop a feasible plan. Stay committed to your plan and objectives, even as time goes on. Make sure to schedule regular meetings with your advisor to review your progress and update them on any major changes in your life.
For more help or information regarding financial planning or wealth management reach out to William Bevins CFP CTFA. His office is in downtown Franklin TN or visit his website.