Amid market insanity, some advice for staying sane
After all the recent stock market insanity, we could use a healthy dose of rational advice.
CPAs to the rescue.
The AICPA recently asked a handful of members who hold the Personal Financial Specialist (PFS) credential for their best advice for safeguarding personal savings and investments.
Some of their tips:
- Control what you can in your situation. Can you reduce spending in any areas to put less of a burden on your investment assets? Are you able to increase your income or perhaps work a bit longer than you had planned to offset the impact of lost portfolio value? (Lyle Benson, CPA, PFS, Baltimore)
- Review overall asset allocation to make certain you are not overexposed to particular market segments. For example, if you hold mutual funds, make certain that the top holdings do not overlap. Many funds have significant exposure to the financial services sector. (Brent Lipschultz, CPA, PFS, New York)
- Review all of the companies you invested in and think strongly about why you picked those companies. If the shares were $40 and are now $20 you may want to hold onto them and ride it out, if the firm has a strong business plan and the fundamentals are sound. You may even want to consider purchasing more shares at the "discounted" rate. (Lipschultz)
- Doing nothing is often the best action to take. If your overall asset allocation has been in line with your goals and risk tolerance, you will make it through. (Benson)
Read the rest of the tips here, then tell us: Have you made any changes to your savings or investment strategies lately? What's you're best advice for riding out this storm?