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An Approach to Stock Market Volatility
With considerable market volatility, especially since late
May 2015, you may have wondered what you should do in
order to invest for retirement or other goals. Unfortunately,
the media often highlights negative stories and hypes
potential problems as the stock markets behave like a roller
coaster. Also, we are often asked what to do about investing
given the coming elections. Our multi-time-tiered, separate
buckets-of-money approach help our investors navigate
dynamic markets.
There’s no doubt that we live in an uncertain world and
interesting times. We believe that we can help you feel more
confident while staying invested by using the approach
of time-tiered accounts, or what we like to call “buckets of
money.”
We assign each bucket its own timeframe and strategy with
the most immediate needs (perhaps three years) covered
in bucket one. That bucket is extremely conservative and
therefore stable in the majority of volatile market situations.
On the other extreme bucket four could be 100% invested
in equities but with a very long time horizon or possibly the
plan to ear mark the account for inheritance. Buckets 2 and
3 fit between the two extremes previously noted and would
likely be personalized mix of stock and bond allocations to
fit your risk preferences.
Determining the proper strategy and holdings for each of
those buckets is a critical decision, often shaped by one’s
own preferences and appetite for risk. We hope you find the
below illustration helpful. We gladly offer our experience to
clients to help them make these choices and craft a similar
strategy specific to their personal needs.
Phil Messuri, MS, CFP®. .................. direct line (505) 798-6941............................................
Travis Flandermeyer, MBA. ............. direct line (505) 717-1111..................................................
6100 Uptown Blvd NE, Ste 610B/C, Albuquerque, NM 87110.......................................
www.DoctorsFinancialResource.com
Investment Advisor Representatives offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC. Cetera is
under separate ownership from any other named entity. The Doctor's Financial Resource and Cetera Advisor Networks LLC are not affiliated.
Tax and Legal Disclaimer
This article is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific
legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.
Diversification
A diversified portfolio does not assure a profit or protect against loss in a declining market.
Investment Risk
All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful.