VERTEX CAPITAL BLOG

Handling investments during a volatile stock market is stressful. Consider these financial stress-management tips before letting investment anxiety get the best of you.

This is the nature of investing. Just when you think you’ve got it covered, a Black Swan appears. This event was particularly frightful, as it not only attacked our economic security but our human fragility. We were simultaneously forced into a conversation about the potential for economic ruin and death.

How much retirement income can you expect if the stock market doesn’t produce the types of investment returns that you’re anticipating during your retirement years?

Not that long ago, I jumped onto Thunder Road in an effort to relive my childhood; and I hated every second of it. Being used to the smooth and fast turns of newer coasters, I had forgotten how rough the ride was with Thunder Road. It was so brutal that I knew a chiropractic adjustment was in my near future. It would be the last time that I would ever ride that coaster.

At the time of this draft, global markets have experienced a significant downturn, and it is possible that we haven’t seen the end of this extreme volatility. I’ll admit that times like these can give you heartburn, especially if you stay glued to the television and your investment portals. However, I cannot stress enough that what we are experiencing at the moment is a normal part of investing.

When we sit down with clients, we work hard to learn all we can about their goals and priorities. As much as we can allow, we want the financial planning process to be a collaborative effort. As part of that planning process—a part that never leaves—we must continuously assess our plan’s progress toward our goals. This includes an understanding of how prepared we are for what we call Black Swan events.