Everyone is telling you to “sit tight” regarding your retirement investments. But financial planner Galia Gichon, founder of Down-to-Earth Finance, says there are three things you should do to ease fears and feel more in control of your money:
Open a vent. Gichon says it’s imperative to ratchet down anxiety, so you don’t make impulsive moves. It sounds simple, but venting to another human being; avoiding the news for several days; or consulting an advisor or other financial pro can be a powerful asset protector.
Run the (new) numbers.
Yes, the impact of these last 12 years could lower long-term returns. But don’t panic before you run some numbers.
Use this online calculator
, and assume a more modest return of 5% annualized, instead of the common 7% or 8%. It could be reassuring to see how much growth is still ahead.
Do no harm.
If you must
take action, seek out lower-cost funds
—which you’ve been meaning to do anyway, right?—or sell a very small portion
of your assets to feel more in control, Gichon says. Or turn your attention to other aspects of your financial health. Is it time to refi? Pay off some debt?
You have a whole financial life; it’s not all about the stock market.
Breathe. How have you been treating your investments in this market?