The reality is that markets fluctuate, and at times these fluctuations can be dramatic. Who could blame a person for feeling uncertain?
It’s during those uncertain moments that reminding ourselves about the basic principles of successful investing can help us avoid emotionally driven decisions that we may regret later.
How do you avoid “in the moment” decisions?
Make the Most of Your Employee Group Savings Program
Payroll contributions to your Group Savings Plan are one of the most efficient ways you can save for your goals and take advantage of market fluctuations. It’s a good idea to speak with an advisor to make sure you’re taking full advantage of what’s available to you through your employer. Your advisor can help you formulate a plan to maximize your contributions and provide advice to keep you on the path to overall financial wellness.
Avoid Information Overload
Today, people have access to more investment information than ever before – and much more quickly. This may have its advantages but making sense of all the information and how it relates to your investments can quickly become overwhelming. If you are finding it challenging to navigate through market updates, speak with your advisor.
Don’t Let a Bad Day Get to You
Markets go up. And they go down. A diversified portfolio that takes your needs into account will help you weather the storm. Reviewing your investments periodically with your advisor can take the worry out of investing and keep you aligned with your goals.
Take Advantage of Market Fluctuations
One of the best strategies to minimize the downward impact of markets on your portfolio (and to take advantage of market highs) is to make periodic contributions through your payroll or through pre-authorized contributions. An advisor can help you identify the best route for you.
The Key Word is “Plan.”
No matter what your goals or approach to investing may be, a well constructed financial plan can help you make informed decisions and keep you aligned to your financial goals.
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. Information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.
