Identify Your Needs

How can I protect my retirement savings from recent market volatility?

In today’s volatile investment market, being concerned about your retirement portfolio is certainly understandable – even the most steel-nerved investors have begun to worry about their financial future. And the closer you get to actually retiring, that concern can be even more pronounced.

So, what can you do to protect your nest egg?

Take daily headlines in stride

The media can often parlay one day’s market decline into the coming Armageddon. Your Raymond James financial advisor can help translate the market’s day-to-day activities into bare bones reality.

Remain calm

No matter what happens with the markets, it is important to stay focused on your long-term investment goals. If you are an investor with a good strategy and investments that are fundamentally sound, the best advice is to remain committed to that plan. Don’t let your emotions get in the way of good decision making.

Identify your risk tolerance

What would you do if your investment portfolio lost 30% of its value tomorrow? How about 10%? Unless you’ve been faced with this dilemma before, chances are you’re not sure. Our risk tolerance test can help you determine your level of risk. If a loss occurs, will you run for the hills or stay and fight? Your asset allocation should reflect your preference.

Save at least six to 12 months of living expenses in a cash account

Ultimately, the amount of cash and income you have will determine when you can afford to retire. To get a better estimate of when that may be, use our retirement planning calculator, as well as the advice of your Raymond James financial advisor.

Spend wisely

In an effort to increase the amount of cash you have available, estimate your expenses and track your buying habits. If you’ve never created a budget, start by writing down expenditures for the next seven to 10 days – our budget worksheet can help. This will help get a handle on your purchase patterns. You can then highlight necessary items and evaluate others to determine where you can spend less.

Regardless of market up and downs, it is important to remain focused on the long term. Fear of losing all of your money is generally unwarranted when you have a diversified portfolio. Although it may be tempting to abandon your long-term investment plan in these uncertain times, it is important to remember why you started investing in the first place – to live your dream of a comfortable retirement.

To discuss in detail your unique financial situation, please contact your Raymond James financial advisor or use our Office Locator to find our office(s) nearest you.