October 10, 2022
Question: I realize there is no way to time the stock (or bond) market - but do you have any suggestions on actions I can take to cope with markets in years like this?
Tips From Kate:
Make sure you have enough in cash reserves so that you aren't relying on your investments to provide living expenses. By doing this you can rely on the long-term perspective to wait out the market volatility and wait for the market to recover.
Invest regularly and systematically in a diversified portfolio- There is generally always an asset class performing well and an asset class not performing well. By investing regularly, especially through down markets, you can take advantage of purchasing at a lower price.
Don't look at your statements- If you are troubled by a down market, try not to look at your balances often or ask your financial professional for a review.
Tips From Amy:
I always consider market downs as opportunities, buying on the low side, believing that the law of averages will take over and averages are formed by the lows and the highs of anything. So to me, buying into this type of market is an action step that I personally am taking.
We also have a checklist you might be interested in: What Issues Should I Consider During A Recession Or Market Correction? | fpPathfinder
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