During Times of Market Volatility and High Emotions…
Take a Deep Breath and Remain Calm
While the markets have seen some of its worse days since 2008, it does not necessarily mean we are headed to a new economic recession. Yes, it can be concerning and stressful, but it does not mean you need to actively start rearranging your investments. Similar occasions of market uncertainty have provided opportunities for long term investors.
Investors need to stay focused on their goals, keep in mind their investment horizon and understand the reasons for this volatile environment. With time on your side, focus on the long term and take advantage of strategies to help secure your investments.
Pre-Pay Future Premiums
You can pre-pay future premiums due and forget the worry. It can be beneficial to pre-pay premiums in advance so, during times of crisis, you can make the most of your cash on hand and not have to worry about making premium payments. Investors Trust offers pre-payment options for Evolution, S&P 500 and MSCI Index plans.
Dollar Cost Averaging
The strategy of placing a fixed dollar amount into a given investment on a regular basis. It takes place each month regardless of what’s happening in the financial markets. Rather than purchasing shares all at once at the same price, with dollar cost averaging, you are spreading out the purchasing of shares at different times and rates. Thus, this strategy eliminates the issue of market timing, as the investor’s returns are determined by an overall trend of the given stock as opposed to the investor’s specific entry price.
Keep Contributing
Just because the markets are volatile, it does not mean you have to lose your focus and alter your contributions. It is important to maintain your current contributions and focus on the long-term goal.
Every crisis brings opportunity and this is not the first time we have weathered such volatile environments together. We strive to guide you through the rough times and seek out opportunities that can be beneficial for investors.
The information contained herein, while obtained from sources that we believe to be reliable, is not guaranteed as to accuracy or completeness, and the information and details can change at any time without notice.
‡Neither Investors Trust nor any subsidiaries, affiliates and businesses under the ITA Group, offer investment advice or make recommendations regarding investments. You should consult your own tax, legal or investment professional to assist in your financial decisions.
