Your portfolio may be designed to give you the best chance of achieving your financial goals, but the market does not care about your goals or risk tolerance.
The Market Has a Mind of Its Own
Market volatility can feel personal, even though it is not. A well-designed financial plan considers volatility because it can shake even very disciplined people.
A Living, Breathing Plan
A good financial plan is dynamic. Goals evolve as life changes: a new job, tax bracket, home, inheritance, family-care need, baby, divorce, or other event. The plan should account for different scenarios.
What Should You Do?
Use reliable resources, focus on what you want money to accomplish, and understand your investment philosophy. This keeps attention on the big picture rather than market noise.
Emotions can distract from goals and cause investors to abandon a plan. A carefully designed plan, created with a good financial professional, should walk through scenarios before emergencies arise.
Markets will always be unpredictable. A plan that accounts for issues that could derail you can help you endure bad periods with confidence. The best way to predict the future is to prepare for it.
-Paul R. Rossi