It’s SUMMER! And all of those fun things to do at an amusement park host all the attractions for thrills and adventures. Some of the rides promise a fast and furious experience and others ‘stomach dropping’ excitement. Who doesn’t love a great ride??
Unless it is your retirement plan investments!
When it comes to investing for the long haul, fear sets in when the bottom drops out of the market, and you celebrate all the wins when the market is up. Since the beginning of 2024, the market is up approximately 13%. This is great news, and most people will be celebrating the valuable gains.
However, as stocks are up and bonds are fairly level, your gains mean that you have also taken on more risk. Therefore, your portfolio may no longer align with your investment goals. What should you do?
Naturally, as humans, our decisions regarding how we manage our money are driven by emotion. Tools exist that help take the emotion out of the investing process.
One of our favorite financial planning podcasts you may want to follow!
Each year, you should revisit your tolerance for risk by completing a new risk tolerance questionnaire that helps you determine your ‘stomach’ for peaks and troughs in the market. You can access our risk tolerance questionnaire here: https://401ktime.com/my-risk-tolerance/
Once you get your results, you should log into your 401(k) account and rebalance your investments to align with your risk tolerance results.
You may also be able to set your account to automatically rebalance periodically without manually logging in and expediting changes. But ultimately, it is your responsibility to check in occasionally to make sure your investment allocation still works based on your season of life.
Your attention to rebalancing your account periodically will help smooth out the roller coaster rides and keep you on the merry-go-round.
If you need help with rebalancing your account or want to discuss how this relates to your life personally, please contact us at: https://401ktime.com/contact-us/. We are happy to help.