Does calling your wealth advisor move to the top of your to-do list during periods of volatility in the equity market?
Both individual and institutional investors can get heartburn (or worse) when the leading financial indicators move abruptly. Since the beginning of the year, we’ve seen some major swings, particularly in the equity market. But does this turbulence mean you need to modify your investment strategies?
No. 1: Keep Calm & Trust Your Wealth Advisor in a Volatile Market
Don’t panic about day-to-day chaos in the equities market. Having a meltdown over a downward trend that lasts only a day or two doesn’t help your portfolio, but it can affect your health, your work and your family.
You can always pick up the phone and call your financial planner — or send an email or make an appointment to meet.
If your wealth advisor believes you have reason to worry, you’ll hear from them. But in the meantime, don’t hesitate to reach out for reassurance.
No. 2: Ask Your Wealth Advisor to Give Perspective to Market Volatility
Ups and downs in financial markets are a fact of life, but at what point should you consider the possibility of a serious downturn? That’s a question that your wealth advisor is best-equipped to handle.
Few financial professionals are as intimately familiar with market chaos as wealth managers and advisors. Leverage that knowledge and experience to gain perspective on what the volatility means to your portfolio.
Your financial advisor can show you trends in your asset returns through similar periods of volatility and help you see how they affected your goals.
No. 3: Work with Your Wealth Advisor to Make Necessary Changes to Your Financial Plan
A rapidly changing equity market does not automatically call for modifying your long-term financial plan or reallocating assets. But some trends may warrant making modifications to your financial planning strategies sooner rather than later.
Ask your financial advisor to review your portfolio and your short-, mid- and long-term goals. The closer you are to retirement, the more important it is to keep a close eye on your level of risk. If a substantial portion of your portfolio is in the equity markets, ask your Certified Financial Planner™ what allocation changes you should consider to mitigate unwanted risk.
The Certified Financial Planners™ of Divergent Wealth Advisors assist both personal and institutional wealth management services for our Utah clients. Don’t panic about market volatility, but don’t ignore it either. Contact our office today to schedule an appointment to discuss today’s topsy-turvy equity markets with your wealth advisor.
DISCLAIMER: It is important to note that this information is not meant to provide investment, tax, legal or accounting advice. This material is for informational purposes only, and is not intended to provide, and should not be relied on for, investment, tax, legal or accounting advice. You should always consult your own financial planning, tax, legal and accounting advisors before engaging in any transaction.
Approved by Rick Collins, Divergent Wealth Advisors LLC, Chief Compliance Officer 4/16/2018