Stocks Dip For The 2nd-Straight Month
/Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
Have a great month,
Brian E Betz
Principal
As an investor, navigating the stock market is similar to a hitter in baseball. There are typically two approaches when at-bat: hitting for contact or hitting for power. Contact hitters focus on putting the ball in play, getting on-base, and scoring runs on a consistent basis. This leads to steady results.
On the other hand, power hitters focus on hitting home runs. They likely will, but this approach usually results in a lot of strikeouts as well. This leads to highly volatile results – sometimes really good, sometimes really bad. Here is why your portfolio should be hitting for contact:
Read MoreAnswer: There is no “one-size-fits-all” amount to invest. For instance, the flexibility to invest more of your income looks vastly different for someone who has a mortgage and several kids versus someone with no major financial responsibilities.
With only a few months left in 2020, certain end-of-year deadlines are quickly approaching. Here are three things you should consider before it is too late:
Read MoreTake advantage of your 20s. These years can be extremely valuable toward boosting your long-term financial success. What you accomplish early in your career lays the foundation for the decades to come.
Read MoreAs states ease their stay-at-home restrictions, there is uncertainty regarding how COVID-19 will evolve over time. Will infections spike in the near future? If so, will the economy worsen? The many unknowns make the stock market even more unpredictable. For 401(k) owners, this uncertainty can feel daunting. Here are four tips to help you and your 401(k) navigate the stock market amid the Coronavirus:
Keep Contributing
Even when the stock market takes a hit, keep making 401(k) contributions. By doing so, you manage your risk during a turbulent market due to dollar-cost averaging. As your contributions go into your account, you are buying stocks/funds at reduced prices, which is beneficial considering that the stock market rises in the long run.
Stay The Course
Severe 401(k) losses can cause a lot of discomfort, which triggers some investors to start panic-selling. If you are a long-term investor (e.g. not retiring within 3 years or so), you should NOT be concerned with short-term market dips. For participants who ARE retiring in less than 3 years (again, give-or-take), it might make sense to adjust your portfolio, such as dialing back your aggressiveness. However, most 401(k) owners should carry forward, assuming you are properly allocated in the first place (relative to your time horizon and risk tolerance). The market will not stay down forever.
Forget Your Login & Password
When the market falls, the natural reaction for many of us is to go online and look at our account balance. Avoid this. Logging in frequently may lead to more stress than actual comfort. You can create an unhealthy obsession with the short-term and lose sight of the big picture by constantly logging in to view your account. This is something to refrain from amid an unstable market.
Seek Help If You Need It
A down market can bring angst, nervousness, and confusion. If you are hesitant and unsure about how to manage your 401(k) in the weeks and months to come, talk to an advisor. Although it may sound simple, speaking with a trusted professional can provide reassurance during unprecedented times.
I hope you enjoyed reading!
Joshua J. Baird
Investment Adviser Representative
Over the past few weeks, the S&P 500 index has fallen over 30% from its record-highs last month. This is the first “bull”-turned-“bear” market in my career. Here are three thoughts I want to share from my experiences these past few weeks:
Read MoreAs 2019 winds down, now is a great time to ensure you are maximizing your retirement plan at work (401k, 403b, SIMPLE IRA, etc.). Specifically, increasing your retirement plan contributions before year-end. Consider these two benefits:
Read MoreFor the first time since 2013, the amount you can contribute into an IRA is increasing, from $5,500 to $6,000 ($7,000 if age 50 or older). The 401k contribution limit is increasing as well. The amount of pay you can defer into your 401k plan goes up from $18,500 to $19,000 ($25,000 if 50 or older). This chart details the 2019 contribution limits for various accounts, as well as the gift and estate tax exclusions. Take a look:
Read MoreFor the first time since 2013, the amount you can contribute into an IRA is increasing, from $5,500 to $6,000 ($7,000 if age 50 or older). The 401k contribution limit is increasing as well. The amount of pay you can defer into your 401k plan goes up from $18,500 to $19,000 ($25,000 if 50 or older). This chart details the 2019 contribution limits for various accounts, as well as the gift and estate tax exclusions. Take a look:
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