Home > Education > Market Volatility > Should I Just Get Out Until the Market Calms Down?
Ric Edelman offers ideas for prioritizing financial decisions

Should I Just Get Out Until the Market Calms Down?

Ask yourself these four questions first

For most people who have a long-term outlook and a properly diversified portfolio, there’s really no reason to liquidate right now. In fact, doing so can cause more harm than good. So, before you make any drastic decisions, you need to ask yourself the following four questions:

  1. Is my portfolio properly diversified? We build portfolios featuring 16 or 18 different asset classes and market sectors, designed to match each client’s risk tolerance and long-term goals. Can you say that about your portfolio?
  2. Do I have ample cash reserves? We recommend our clients have at least six – and preferably 12 – months of spending in money market funds or bank accounts. Do you have the cash you need to continue paying your bills for a year without having to liquidate your long-term investments?
  3. Do I still have a long-term outlook? Your outlook is long-term if you expect to live another 5,      10, 20, 30 years or more and are planning to leave your money untouched for that period.
  4. Are my circumstances unchanged? Are you fortunate enough to still be working and earning a paycheck, with the same health and family circumstances as before the crisis started?

If you can say yes to all four of these questions, there’s no reason to make any changes to your investment portfolio at this time.

But if you can’t say yes to all four questions, you need to talk to your financial planner right now.

And if you don’t have a planner, or if you’re not happy with the one you have, call us. We’re here for you.

Talk with a Financial Advisor

No Cost. No Obligation.

Single Step Form Articles

  • What is the approximate value of all your investments and savings, not including your home or other real estate? Investments and savings include your retirement accounts, stocks and bonds, funds and savings accounts. We can help you move your financial life forward no matter where you are in your journey.

By clicking submit you are agreeing to our Terms of Use and Privacy Policy.

Schedule Your Free, No Obligation Consultation

You May Also Like:

  • Edelman Financial Engines Decorative Triangle Background
    Article
    Q&A: Where to Put Money for Building a House?
    Read More
  • Young parents with child hold a play roof over their heads
    Article
    What You Should Know About Your Home Insurance Before a Disaster
    Read More
  • Pile of coins and money on a table with a house in background
    Article
    Q&A: Can I Get a Mortgage When I am Retired?
    Read More