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AARP Financial's Ten Tips to Survive Today's Market
AARP Financial is providing proactive steps that people can take to help protect their nest egg amidst a financial market that is in turmoil.
"We are hearing from AARP members and it is a rough time for people who are planning for retirement. The natural instinct is to pull all your money out of the market and put it under your mattress. This not a time to abandon your retirement plans or take drastic measures," said Mac Hisey, President of AARP Financial.
The Financial Advisors at AARP Financial can provide investment guidance and help you make the most of your retirement investments. They can help answer your questions - whether you are planning for - or are already in retirement. They can be reached at 888-778-6187.
To guide Americans through challenging economic times AARP Financial has prepared the following tips:
- Don't Make Rash Decisions - Recent events highlight the need to have a financial plan that you are able to follow regardless of market swings. As difficult as it may be, don't let your emotions drive your investment decisions. Reacting to every up and down in the market is not good for your health - or for your financial portfolio.
- Revisit Your Reasons For Investing - In volatile markets keeping a long-term time horizon can be very challenging. However, if your investment goals, time horizon, and financial situation have not changed, your best course of action may be not to take action. Now is a good time to reassess your financial situation, but only make changes if needed.
- Establish an emergency fund - Keep at least 6 months of living expenses easily accessible in savings or money market fund accounts. This enables you meet unexpected financial obligations.
- Make saving automatic - The best way to get past volatile markets or tough economic times is to make investing automatic. Establish an automatic investing plan* that makes investing a seamless process by regularly deducting a set amount from your paycheck or checking account and transferring it to a retirement savings account.
- Review fees and expenses - Take another look at the fees and expenses you are paying on your financial products and services. For mutual funds, review expense ratios; credit cards, scrutinize interest rates; and for banking products, transaction charges. Switching to a lower cost product may save you money.
- Resist impulse purchases - Think twice before making a discretionary spend. Avoid incurring debt on any impulse purchases regardless of the "deal" and instead put that money in a savings or investing account.
- Have a plan - It is never too late to put a retirement plan in place. Having a plan helps you determine whether you are on the right path to the financial future that you want. And in times like these a plan, not your emotions, should drive your investment decisions. So, if you do not have a retirement plan, now is a great opportunity to create one.
- Consult with an expert - Financial advisors are specially trained to help people manage their finances. If you work with a financial advisor, schedule an appointment to review your portfolio. Discuss your concerns and request an assessment of the performance of your holdings. If you do not receive the guidance and information you need, or do not have a Financial Advisor, the Financial Advisors at AARP Financial are a great resource.
- Get Informed - Research shows that many people struggle with fundamental financial terms and concepts. Take steps to get the information you need by visiting www.aarpfinancial.com to learn more about investing for the future.
- Don't be Afraid to Ask for Help - AARP Financial's salaried Financial Advisors provide personalized investment advice to help you make the most of your retirement investments. They can be reached at 1-888-778-6187.
*An Automatic Investment Plan does not assure a profit and does not protect against a loss in a declining market
While AARP endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is a registered investment adviser and a subsidiary of AARP.
The Financial Advisors are investment adviser representatives of AARP Financial Inc., a registered investment adviser.
AFI000207/Exp 3/31/09
