It can be unnerving to watch the wild swings we have seen in the markets over the past few weeks, especially if you are planning to retire in the next 3-5 years.  None of us want to experience what potential retirees endured from 2007-2009.  The sad reality was that those people had to radically change their retirement plans and many continued to work simply because they no longer had the assets needed for retirement.

The question is: what should you be doing to protect yourself from volatility?

The first step is to admit that you might have a problem.  
If you are watching the markets on a daily basis and are experiencing any level of anxiety over what you’re seeing, then you have a problem.  It’s possible that your portfolio is built for growth and may not reflect what your true risk tolerance is at this point in time.

The second step is to do something about it.
The major indices have not hit a full correction yet.  Take this volatility as a warning sign that the markets do not always cooperate the way we want, when we want.  Making a change to your portfolio is scary, because change is not easy.  However, not taking action can only perpetuate your problem.  Take a proactive step to add some protections to your portfolio that may not currently exist.  It’s not too late to make an adjustment.

Let the professionals do the work.
The portfolio managers we use proactively moved to more defensive positions needed to withstand volatility months ago.  If you are self managing, would you even know what a more defensive position would be?  Professional managers are knee deep in the markets all day long, and it some cases they are in it 24/7.  The portfolio managers we use at Montini & Co, are some of the best in the country with a vast knowledge of all things related to the markets.  Additionally, a professional portfolio manager is a fiduciary who is legally obligated to operate in your best interest.  Wouldn’t you want someone like that to be in control of your assets?

Come in for an appointment.
Montini & Co can help.  We have the tools to perform a complete analysis of your existing portfolio and help identify where problems may exist.  We can bring solutions that can mitigate risk during these volatile times.  We will construct a sustainable income plan you can rely on.  We will complete a tax plan and help you work towards getting to the point of zero tax in the future.  None of this is easy, but it needs to be done, and Montini & Co can help.  Click here to schedule an appointment.

Tell a friend.
Let’s face it, retirement is a lot more fun when you can do it with friends.  You may be reading this as an existing client with Montini & Co, or you may only know us for the classes we teach and the low cost tax returns we offer.  Regardless, if you are losing sleep, it’s possible your friends are too.  Let us help put you and your friends at ease.

Finally, real wealth is not necessarily made in the upswings in the markets. Real wealth is made in not taking a tremendous loss once the markets move from correction to recession.

Written by Marc Montini. IAR, and Owner of Montini & Co Tax Advisory Group in Phoenix, AZ.

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