Does the market volatility have you concerned? If there was ever a time to reevaluate your risk tolerance, this may be it.

There is a lot of validity to being emotional given the recent large swings and gyrations in the broad markets. The added component of increased uncertainty adds to the situation. As I mentioned many times here, there is also the factor of non-stop opinion on a multitude of media platforms that we can all tune in to, which may add confusion.

There are plenty of strategies that an investor can use to combat the volatility, and more importantly calm the understandable concerns. For example, there are numerous Exchange Traded Funds and Annuities that protect investments on the downside to certain extents, that may be a fit for your portfolio. These strategies and proper balance may limit large fluctuations, and in recent history, they have done so.

Most importantly, aside from the mechanical part of reducing volatility and risk, being less emotional will provide a clearer decision-making process. 

Many investors are relying on retirement plans such as 401(k)’s for their future. Many times, these plans are limited to a choice of mutual funds to invest in, and are usually solid investments, however thay are still limited.  A key strategy that some people may not be aware of, is the possible availability to rollover the 401(k) when a participant reaches 59 ½ years old. The participant does not need to leave the place of employment.  If the plan document allows for “in service distributions”, it may open doors to more vast investment choices in an IRA.

That is just one facet of retirement plans that some people are not aware of.

Peter Janowsky