1. Look Past the Headlines

Negative headlines and market volatility can make it tempting to alter a well-designed investment plan. While selling off your portfolio may make you feel better, this decision could mean lost opportunity and not achieving your long-term investment goals.

1. Don't Get Emotional
Year /Event Return (%) Return in Following Year (%) Next 5 Years Average Return
1990 Gulf War -14.8 +12.0 +10.8
2002 Tech Wreck -12.4 +26.7 +18.3
2008 Financial Crisis -33.0 +35.1 +11.9

2. Follow these Principles

Stay disciplined with these five principles of sound investing:

  • 1. Invest Early
  • 2. Invest Regularly
  • 3. Invest Enough
  • 4. Diversify
  • 5. Have a Plan

3. Adjust Your Plan as Needed

Your investment plan should be dynamic, not static. Here are three “levers” that can be adjusted over the years to meet your changing needs.

Concerned about not having enough money to meet your goals? Consider adjusting how much you contribute on a regular basis. Even a small increase can have a significant impact long-term.

You can extend or shorten your investing time horizon based on your needs. For example, postpone retirement or re-enter the workforce if you want more time to build your wealth.

This lever should be shifted carefully as your risk profile is core to your investment plan. The best way to do this is to review your portfolio regularly with your financial planner.

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