In This Volatile Market, Are You Staying Calm?

In today's turbulent economic situation, are you staying calm with regards to your retirement savings? One of the worst mistakes you should try to avoid is making panic driven decisions. These decisions are solely made due to your reaction to negative economic developments.

We are hearing the problems constantly in the news. They are real and one to be concerned about, but the market has always changed. The market and economy changes in cycles.

If you maintain a long term perspective concerning your 401 or other retirement account, you will continue to keep the benefits of the many years of planning and saving. It may be tempting to try and outperform the market by guessing which way they will go and then shifting your money between assets. Even experienced pros cannot guess or predict.

If you plan for long term, you can reduce your risk. Sticking to your plan no matter what the markets are doing over the short term is important to achieve your retirement saving goals. Getting the advice of a professional could help with investment strategy, goals, needs and your risk tolerance.

Stocks, bonds and cash all carry some risk, but at different levels. If the risk is greater, the potential for a greater return is there. Do not carry a great risk if you cannot comfortably tolerate it. Considering the fact that stocks, bonds and cash can go up and down with returns and have different levels of risk, you might be more comfortable having a mix of all three. Find the right balance that is right for you.

It is important for you to monitor your accounts from time to time. It may be necessary to rebalance your assets, but using a long term approach rather that panic driven decisions.

If you can keep your head when all about you are losing theirs...Yours is the earth and everything that's in it...
Rudyard Kipling

Source: Goldman, Sachs & Co.