Retirement News.io: How Do You Help Clients Navigate Volatile Market Periods?
August 28, 2024
Maintain Emergency Funds and Diversify
Cash is king (or queen) and allows you to think with a clear and level head while the market is volatile. We encourage clients to maintain an emergency fund so that they have the desired amount of cash as well as anything additional that they might need for upcoming expenses.
Asset allocation, diversification, and rebalancing are the names of the game. We have many conversations with our clients at the beginning of the relationship to understand their appetite for risk and help to put the right strategy in place for the portfolio. We then invest the portfolio so that it is represented across different asset classes, geographies, sectors, and industries. The goal with a diversified portfolio is to invest in asset classes that are not highly correlated with one another; it can help mitigate volatility. On an ongoing basis, we rebalance regularly to help ensure the portfolio stays in line with the desired strategy.
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This article is limited to the dissemination of general information about Modera’s investment advisory and financial planning services that is not suitable for everyone. Nothing herein should be interpreted or construed as investment advice nor as legal, tax or accounting advice nor as personalized financial planning, tax planning or wealth management advice. For legal, tax and accounting-related matters, we recommend you seek the advice of a qualified attorney or accountant. This article is not a substitute for personalized investment or financial planning from Modera. There is no guarantee that the views and opinions expressed herein will come to pass, and the information herein should not be considered a solicitation to engage in a particular investment or financial planning strategy. The statements and opinions expressed in this article are subject to change without notice based on changes in the law and other conditions.
Investing in the markets involves gains and losses and may not be suitable for all investors. Information herein is subject to change without notice and should not be considered a solicitation to buy or sell any security or to engage in a particular investment or financial planning strategy. Individual client asset allocations and investment strategies differ based on varying degrees of diversification and other factors. Diversification does not guarantee a profit or guarantee against a loss.
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