Could your investment portfolio weather a financial storm? Every investment plan encounters market volatility from time to time, no matter how well diversified. Even the experts are put to the test in turbulent times like these: tariffs, trade wars, unexpected Federal Reserve moves, fluctuations in the Dow Jones or S&P 500, a slowing global economy, even the threat of a recession.
The good news, despite the gloom and doom heard on Wall Street, is that there are always growth opportunities in the market even during periods of turbulence, and if your portfolio was constructed for long term growth then periods of volatility should not be a fear factor. For some, depending on your situation, this could be a good time to harvest capital losses to offset capital gains or other taxable earnings during the year.
We suggest staying on course and keeping an even keel. Perhaps this is a good time to re-evaluate your risk tolerance. If you’re sensitive to portfolio swings then it may be smart to adjust allocations and perhaps sacrifice some potential gain for stability and peace of mind. Keep your financial goals in mind, and make sure any course correction takes into consideration a 360 degree perspective of your current situation. Never make important financial decisions in haste, and be sure to take emotion out of the equation as well.
Chart your course accordingly, depending on your horizon:
• Forties and Fifties: Stay the course. Your portfolio will likely now be a mix of strategies, both growth and wealth preservation; you have time to adjust allocations if you feel the financial market turbulence is causing swings in your portfolio you are no longer comfortable with.
• Sixties and Seventies: Reevaluate, corrections may be necessary. Your portfolio strategy may be shifting to income and safety. Revisit your allocations and investment strategy and compare against your retirement plan and estate plan, especially if your goals are changing at this stage. Make sure your investment plan is appropriate for retirement and will have your money available when you need it.
CONTACT US: If you would like to reexamine your investments and realign your financial goals with current market conditions, we can assist you by providing a Portfolio Risk Analysis. Feel free to contact me, Cory Lyon, directly at 561-209-1120, for a complimentary Risk Analysis Consultation. If you are concerned your portfolio is no longer meeting your needs, I am happy to answer any questions you might have regarding financial investment strategies. At TFG Financial, we believe in customized asset management. I act as a fiduciary for all my clients.
TFG Financial Advisors, LLC is a registered investment advisor. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed here.
