Easing Your Money Fears

Whether you're retired or just thinking about it, feeling as if you have no control over future events can cause stress that affects your well-being. Developing a strategy with the help of your financial professional to address your concerns can help mitigate your fears.

What's Bothering You?

Money issues? Health issues? Market downturns? Identifying your fears should be the first step in developing a strategy to overcome them. Putting a name to the things that are causing you stress can set you on the right track to finding solutions.

What are Your Goals?

What are your plans for the future? Travel? Pursuing hobbies? Starting a business? Identifying concrete goals you're saving for can bring them into sharper focus. Visualizing what you want your life to look like in retirement can make the future feel less intimidating.

Assess Your Financial Picture

Do a deep dive into your finances with your advisor. Does your current financial situation align with your future goals? Designing a strategy that moves you closer to your goals while reducing risk may ease your anxiety. Diversifying your portfolio and setting up an emergency fund for unexpected expenses can provide a cushion in the event of a market downturn or an unexpected loss of income.

Protect Yourself in a Health Crisis

The financial impact of a medical event can be devastating if you don't have adequate insurance. Reviewing your health insurance to ensure you have sufficient coverage in the event of an illness or injury can remove a major stressor from your life.

Fear of a Market Downturn

For many investors nearing or in retirement, the biggest fear is portfolio losses from a sharp drop in market values. While you can't predict what the markets will do, you can take steps to protect your savings from market volatility. Adjust your asset allocation to balance growth with asset preservation by holding fixed-income investments alongside stocks in your portfolio. Because stock and bond values typically move in opposite directions, bonds may provide a cushion during a market downturn.

*Asset allocation won't guarantee a profit or ensure against a loss but may help reduce volatility in your portfolio.