Emergency Planning For Market Fluctuations

First of all, lets define what a market fluctuation is. A fluctuation is an irregular rising or falling in a number or an amount to a variation in flow. In other words, it is a change, a shift, an alteration, or a movement. If you have been keeping up with the market recently, you are aware that this has been happening the last couple of weeks. Although fluctuations in the market may seem scary, they are not always a bad thing.

“The stock market is a device for transferring money from the impatient to the patient.” – Warren Buffet

When you start to see the market going through a fluctuation, whether good or bad, it’s a good idea to communicate with your money manager or financial planner and DON’T PANIC! Inform them that you might be a little nervous or confused and would like to review your portfolio.  If your long-term goal is retirement then your allocations should already factor in short-term market drops.

Fluctuations are not at all uncommon in the markets. A positive thing to remember is after every correction, adjustment, or movement in the past, there has always been a recovery to follow. The markets will come back and eventually stabilize, that’s the important thing to remember.

Emergency Plan

• Market drops are an expected, unavoidable part of investing.
• Stay calm and stay the course.
• Remember why you’re investing.

If the purpose is to generate immediate income, and your not comfortable with market drops, you may need to pull back a little. If you do intend on pulling back it’s important to do it subtly and make structured moves, rather than panicking. Throughout the process, keep in communication with your money manager or person in charge of your finances like mentioned before.

When the market starts to fluctuate stay calm and stick to your game plan to ensure that the purpose of your money is fulfilling what your desires are.  It’s our job is to remind our clients this is what we have prepared for together. No matter what the market does we’re here to help you stay on your way.

If you have any financial questions or would like to hear more on this topic, give our office a call at 417-882-1800.

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We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives.  This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice.  All investments are subject to risk including the potential loss of principal.  No investment strategy can guarantee a profit or protect against loss in periods of declining values.  

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions.  

We are not permitted to offer, and no statement contained herein shall constitute, tax or legal advice.  Individuals are encouraged to consult with a qualified professional before making any decisions about their personal situation.  Our firm is not affiliated with the U. S. government or any governmental agency.  Investment advisory services offered only by duly registered individuals through AE Wealth Management, LLC (AEWM).  AEWM and The Resource Center are not affiliated companies.  AW02181554