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5 Tips for Coping with Market Volatility

5 Tips for Coping with Market Volatility

Coping with Volatility

How you react to economic uncertainty can make a difference in your retirement preparedness. The following suggestions may help you stay more in control of your investments during periods of market volatility.

1. Check Your Investment Strategy

A good diversification strategy will be split between stocks, bonds and other investments. It also will take into consideration how long you have until retirement (or until you need to start taking withdrawals) and your risk tolerance. Review your investment strategy regularly, and stick to it when markets get erratic.

Investing always comes with risks. By using diversification and asset allocation as part of your overall investment strategy  you can minimize your risk exposure.

2. Avoid Emotional Investing

When you start feeling anxious about the economic situation, remember the plan you have in place. Keep in mind that markets go up and down. The long-term performance of your account is what matters. Your plan can help you stay on track.

3. Review Your Investments with a Professional

When news headlines proclaim market slumps and economic woes start to worry you, contact a financial professional to get the whole story. He or she can answer questions about how market volatility affects your specific financial situation. A financial professional may also suggest ways to make you less vulnerable to market changes.

4. Don’t Give Up On the Market

When the market is in a downturn, it is tempting to get out of investing altogether. That is not always the best decision. Financial markets rise and fall quickly. Before you know it, the investments you got rid of  may rally and experience superior performance. History has taught us that knee-jerk reactions in a market slump often lead to regret when the market springs back.

5. Consider a More “Hands Off” Approach

Managing your investments when the markets are volatile can be tricky. As an investor, you may opt to take more of a hands-off approach by investing in Target Date or Target Risk funds. You also can hire a third party investment management company to handle your investments for you. These options will rebalance your investment allocation as you reach different stages in your life and as the markets change. Discuss your managed account options with a financial professional.

to see how your investments are performing, or to see if your investment strategy is still on the right track, schedule time to meet with your financial professional.

 

 

Notes:

Investing always involves risk. There are no guarantees that an investment will grow in value. Diversification does not ensure a profit or protect against loss. Each group of investments carries its own unique risks. Before investing, please read each fund prospectus for a detailed explanation of the risks, fees and costs associated with each underlying investment option.

Group annuity contracts are issued by American United Life Insurance Company® (AUL) and registered variable annuity products are distributed by OneAmerica Securities, Inc., a Registered Investment Advisor, Member FINRA, SIPC, One American Square, Indianapolis, IN 46282, 1-877-285-3863. McCready and Keene, Inc. and OneAmerica Retirement Services LLC provide administrative and recordkeeping services and are not brokers/dealers or an investment advisors. Neither AUL, OneAmerica Securities, McCready and Keene, OneAmerica Retirement Services nor their representatives provide tax, legal or investment advice.

 

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