If you are planning for retirement, chances are your investments are losing money.
So what do you do?
Robert Lavoie said he’s learned to take market swings in stride.
“As a younger investor when I tried to do things on my own, yes I would have made knee-jerk reactions whenever prices were falling or heading up or something was getting hot,” said Lavoie.
“But I’ve learned from being burned in those situations,” he added.
“I think it’s always a poor decision to make a quick radical change in your investment approach.”
Sterling Rempel can sympathize.
The certified financial planner said it’s natural to be afraid and make snap decisions when financial markets are falling.
But he said a good retirement or investment plan should account for swings in the market.
“Take a look at your own risk tolerance, your time to retirement, your other assets and determine if this something I can weather,” advised Remple.
“Because if history is any guide it will be relatively short-lived,” he added.
On the other hand, if you aren’t close to retirement and you have the money to take risks, it’s a good time to buy.
That’s not in Robert Lavoie’s plans.
He’s happy with his balanced investment portfolio and he’s looking forward to retirement.