Sometimes, an unexpected drop can be jolting to your system. If you haven’t experienced it before, it can leave you feeling anxious and wondering if another one is coming or if you’ve gotten through the worst of it.
Turbulence when flying can be unsettling to the inexperienced flyer. As you may have thought, there are quite a few similarities between market volatility and hitting turbulence at 30-thousand feet. Sometimes you have advanced warning of changing conditions ahead, but a lot of times you don’t. Think about the pilot who puts on the seatbelt light because of reports of turbulence ahead. He likely had advanced warning from a number of reliable sources even if the skies looked clear to him.
The same might be said of a financial advisor who looks for signals and indicators in the stock market. They might use multiple sources of information to guide their decision-making when it comes to investing in certain sectors. And as we have seen many times in the past, sometimes the market catches people by surprise.
One thing is for sure, being prepared for the unexpected is always better than not. There are reports every year of a number of airline passengers hurt by unexpected turbulence. There are also plenty of stories about investors who found themselves on the wrong side of a market drop. No doubt, both groups would have liked advance notice of the upcoming turbulence.
There are plenty of things that we encounter in life that are out of our control, so it’s not worth spending time worrying about them. Instead, focus on the things you can control and you’ll feel better prepared when the unexpected happens. One of the things you can control as an investor is setting your goals and designing a strategy to get you there. Some people may not have the expertise to design a financial plan and strategy, so seeking help is definitely recommended. A qualified financial advisor should be able to put together a financial plan and investment strategy tailored to your individual circumstances.
We spend time learning about what’s important to you and setting some lifestyle goals before digging into your finances. This helps when we integrate the details of your financial life into your overall retirement strategy. There is nothing more important than taking the time to get these details right and that’s why we offer complimentary, no obligation financial reviews. Remember, you might not always be able to avoid unexpected events like turbulence, but being prepared for it can make all the difference.