You & Your Money

5 Tips for Investing In a Down Market

July 12, 2023 Weiss, Hale & Zahansky Strategic Wealth Advisors Season 2 Episode 26
You & Your Money
5 Tips for Investing In a Down Market
Show Notes Transcript

Don't let market volatility deter you from achieving your financial goals. Tune in now and learn how to make the most of challenging times with these 5 tips presented by Laurence Hale, AAMS®, CRPS®

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Welcome to You And Your Money. Empowering you to reach your goals with tips to help you Plan Well, Invest Well and Live Well. Today's episode features Laurence Hale, principal managing partner and chief investment Officer at Weiss, Hale and Zahansky Strategic Wealth Advisors. Take it away, Laurence. You've probably heard the phrase buy low, sell high when talking about investing in the stock market. Well, that's simple advice. Makes perfect sense at face value. The reality isn't always quite so simple. With the current volatility in the stock market, you may be wondering if now is the time for you to buy low. And it might be. But before you do, consider these five things first. Is your emergency fund fully stocked? Even if you're certain your job is secure and stable doesn't mean you're immune to loss of income due to an unexpected illness or other emergency. The pandemic definitely taught us that. So before you sink any extra funds in new investments, make sure your emergency fund is where it needs to be first. In general, you should have about 3 to 6 months worth of salary saved. Second, would it be better to pay off your debts if you've got debt, particularly if it's high interest debt? You may be better paying it off in the long run rather than using that money to invest. Depending on your particular situation, you may save more money on interest by paying off your debt than you would gain from investing in stocks. This is where working with a financial advisor can be really helpful. Making sure you make the right moves. Number three, take a pause. While it can sometimes feel like the stock market turns overnight. The reality is that recessions and downturns tend to stick around for a while so you don't have to rush into anything. Take the time to speak with a financial advisor about the pros and cons of investing during a market downturn. Remember that the stock market isn't a way to get rich quick. Fourth, make sure you're emotionally prepared to watch your money drop. If you do choose to buy while the market's in a downturn, there's always a chance you'll buy when it hasn't reached rock bottom. You need to be prepared for a bit of a roller coaster ride because especially during a volatile period in the market, there's a chance that you're watching your stocks rise and fall for a period of months. Fifth, and finally, think about whether you're following your normal investment strategy. Don't be so tempted by a short term opportunity that you break from your long term strategy. Make sure you're maintaining a diverse portfolio and an appropriate amount of risk based on your situation. If you'd like a financial partner to help you build a successful strategy, contact us to set up a short meeting and see how our Plan Well, Invest Well, Live Well strategic process can work for you. Until next time live well. That brings us to the end of this episode. Thanks for listening to You And Your Money. Find even more episodes, videos and other resources at our website, whzwealth.com. Be sure to come back next week for more tips to help you live fearlessly and pursue your financial and life goals. Until then, live well. Weiss, Hale and Zahansky Strategic Wealth Advisors offer securities and advisory services through Commonwealth Financial Network member FINRA/ SIPC, a registered investment advisor. Fixed insurance products and services offered through CES Insurance Agency. They practice at 697 Pomfret Street, Pomfret Center, Connecticut, 06259 and can be reached at 860-928-2341. Weiss, Hale and Zahansky Strategic Wealth Advisors do not provide legal or tax advice. The tenured financial services team strive to support clients and achieving their financial life goals. For more information regarding wealth management and customize financial planning with Weiss, Hale and Zahansky Strategic Wealth Advisors, please visit. www.whzwealth.com.