Six smart retirement fund decisions for uncertain times
During these extraordinarily trying times, it’s important to keep making smart decisions regarding your Asante retirement plan. Following disciplined steps can help you eliminate emotion from investment decisions and move yourself into a permanent state of calm.
- Stay the course – Choose an appropriate investment mix you can stay with in good times and bad, and don’t let short-term dips veer you off course.
- Don’t try to time the market – When stocks fall, it can be tempting to move to cash or bonds. However, the best and worst days of the market often cluster around each other, and if you’re on the sidelines when the recovery begins, it can be difficult to catch up.
- Maintain diversification – Concentrating on only one area of the market can expose you to unnecessary risks. By structuring your portfolio around different market areas, you can be well-positioned to seek returns wherever they occur.
- Rebalance your portfolio – The value of your asset mix can change as some investments grow more than others. Rebalancing can help buffer against wide swings in the market.
- Keep contributing – Don’t stop your payroll contributions to the retirement plan. The contributions are buying more shares when prices are low and fewer when prices are high.
- Focus on what you can control – Be mindful of investment costs and personal expenses, hone your job skills, maintain a globally diversified portfolio, mitigate taxes and stay disciplined when the market dips and dives.
If you need answers for a personal work matter, please contact the author or department directly.