The Biggest Drop In Market Since 2008
With the recent market drop by over 10% in just a few days, what does it mean to our investments in the future?
For just a second, lets remember that just five months ago the S&P 500 was at 2940 points (Oct 19th, 2019). While the news has amplified the recent volatility, the S&P 500 closed today at 2,978. This recent drop is one of the reasons that we don't trust extreme short term upward markets, without the supporting economic foundation.
The fact is, the market is still a little above where we were in October. The world has not crashed around us, contrary to the financial media.
People trying to time the markets while watching the media might need to step back to realize that the recent volatility is nothing out of the ordinary. The media sources are and will continue to be really good at getting attention by overstating situations!
It was only last year that we saw the same type of extreme short term volatility with the China Trade Wars.
While none of us like seeing our statement value go down, we have to remember why the financial plan we designed is different than just a money manager or investment portfolio.
When we design an retirement plan, it's not based on future predictions or a crystal ball. We know in advance that every investment will go up and down over time. Historically, certain investments will go up and down more than others. This is why we use the bucket strategy to structure investments.
When we retire, it is more about the income than it is about trying to get the highest return.
The bucket strategy strives to provide income from low volatility investments while allowing higher volatility investments to sit for 5-10 years. The way we structure the amounts that go into each bucket is by your eMoney financial plan.
I have added a video that will help explain how we've structured your plan.
If you would like to have a quick review of your plan and how the buckets work, please fee free to reach out to your planner. You can click on the link below to schedule a brief phone conference.
Click on Links below to schedule a brief phone conference with your planner