For Mark Roberts’ Use: Have you heard the good news? Our economy is doing quite well at the moment, as we enjoy the third-longest stretch of market expansions in US history. In fact, we’re only two years away from it becoming the longest one ever!
In the stock market, the S&P is performing well, with the ratio at its second-highest level since World War 2.
Unemployment is also back down to pre-2007 levels, indicating good things about the direction of our economy.
These things are all a cause for celebration, but they should also prompt you to do some thinking about your retirement savings strategy. We know that re-evaluating your decisions every few years helps you to stay on top of current economic conditions, so ask yourself two questions:
- Are you taking advantage of current conditions to your best advantage?
- Are you feeling so confident that you’re actually taking on too much risk?
Some people might fall into the first category, while others fall into the second. The greater point, though, is to develop awareness on how your strategy responds to changing conditions.
Diversification. Diversifying your portfolio is important under any economic conditions. Have you rebalanced your portfolio in the past few years?
Debt. Sometimes we see people become too confident during periods of prosperity, taking on too much debt. Remember to keep your lifestyle fairly steady, and sock away extra money in your retirement accounts instead. It’s better to retire with “too much” money (not that such a thing exists) than to retire deep in debt.
Emergency funds. If you’re doing well right now, remember that anything can happen. Resist the urge to spend all of your extra cash, and establish an emergency fund now while it’s relatively easy to do so.
Even though our economy is relatively strong, you should still act as an active participant in your financial planning. Call us to schedule an appointment, and together we will review your priorities and decisions, and make recommendations to help you continue to succeed.
Leave A Comment