The Market, Investing and You

Hello 2016, Goodbye 2015.  I am not normally one who looks backwards and rarely one who talks about the market. However, I am a CFP® so I do have to ask the question…how are things going with your portfolio these days?

With the market acting like a two-year-old throwing a tantrum, are you holding more stocks than you are actually comfortable with?  When you first invested, you may have thought yourself a daredevil but, recently, you feeling more like a backyard gardener.  Are you getting towards the stage when you are thinking more and more about retirement? Contrary to the commonly held belief, you can’t make up for lost time with a more aggressive portfolio and the last couple of days are proof positive of that. Even if you are in your thirties and the market volatility is driving you nuts, perhaps you shouldn’t have as much exposure because, rest assured, this isn’t the markets last roller coaster ride. The point is, it is important to reassess your risk tolerance and investment objectives at least once a year.

Too often, people pick an initial couple of investments and call it a day – the “once done and forget about it” style of investing. Unfortunately, your money is a little like that goldfish you had as a kid – forgetting about him means Mr. Goldfish is getting flushed down the toilet just like…well, you get the picture. Investments are just like that goldfish, they don’t need much but every once in a while they do need some attention.

Now, while the year is young, why not take a look at how your money is positioned? Give your portfolio some attention and make an appointment with your advisor to review your allocations. Perhaps you have some tax losses you can stock pile for when the market rebounds. However, try to focus more on how your portfolio is balanced and whether or not it matches who you are. That way when the market decides to throw a tantrum in the future, you may not have to worry so much.