Date: Jul 07TH, 2023

Navigating Economic Uncertainty: How an Investment Advisor Can Help You Weather Market Volatility

The news headlines when it comes to the economy are not comforting. Many of us have experienced wild market drops that have decimated the value of our IRAs, 401ks, college savings accounts and other vital investment products. If you’re nervous about the uncertain economic climate, you have good reason to be, particularly if you’re close to retirement or post-retirement.

The bad news is that recent bank problems, the debt ceiling standoff and rising interest rates are resulting in higher levels of economic uncertainty. If you’re not sure whether your investment portfolio can weather the turbulence, it’s a good idea to speak with an investment advisor to make sure your holdings are as market-proofed as possible.

How Can an Investment Advisor Help Me?

There are a number of ways an investment professional can help you feel more confident about weathering market volatility.

An advisor can steer you toward fewer volatile investments. If you have a lot of tech stocks in your portfolio, for example, you may be noticing wilder swings than other investors. Some industries, by nature, are more vulnerable to market swings while others tend to be relatively calm even in a storm. An investment advisor can help you balance your portfolio to more of the latter and fewer of the former.

Advisors can evaluate the risk in your investments. It’s possible that the level of risk in your portfolio is higher (or lower) than your appetite for risk. An investor can help you determine your risk tolerance and help you adjust your investments to match that risk tolerance. If you’re getting close to retirement – within about five years – it’s probably time to dial down your risk.

They can help you with opportunities. One of the best ways you can tolerate market drops is to be in a position to benefit from the gains that inevitably follow. An investment advisor can be sure you are ready to take advantage of these opportunities when they arise.

They can help you determine your cash holdings. If you have decent cash holdings outside of the market, you will be better able to weather market volatility. An investment advisor can recommend how much cash you should be holding, and where you should keep it. This may involve putting more cash into things like checking or savings accounts, money market funds or certificates of deposit (CDs).

An advisor can help you stay committed to a plan. Many investors get distracted by regular market “noise,” which can cause them to make hasty changes that could derail their long-term plan. An advisor can help you tune out the negative noise and remain committed to a well-crafted investment plan that will allow you to achieve your financial goals.

Talk to an Investment Expert

Arizona-based Prime Wealth Advisors is a full-service tax, retirement planning, estate and wealth management firm that can help you weather market volatility. Call 623.77.PRIME or visit our website for more information.