Stock Market Volatility
We were off to a struggling start in 2016 in the global markets with China halting its trading, which resulted to ripple effects across the globe. No matter what China does, they just can’t seem to take their economy off the ground. Most of the sectors are down including real estate, consumer and industrial markets. On the first three weeks we witnessed the Dow Jones being down by almost 300 points on frequent basis. There aren’t any signs that these scenarios are ending anytime soon. With the stock market down, how are your various investment or savings accounts?
With these events, it is time that all of us realize how important it is to have a financial risk review on your investments whatever accounts you may have. 401k’s, IRA’s, 403B’s, Roth’s, thrift savings and other types of accounts you have in preparation for retirement are, now more than ever, necessary to be reviewed upon. Why? You need to understand whether or not the recent market condition will create a huge effect on the money you worked so hard for all these years. No one wants to be left empty-handed in the future only because the necessary measures needed to take are put in the back seat today.
Managing Risk When The Market Is Volatile
Having said that, have you taken a look at those accounts? Have you set up a meeting with your 401k officer at work? How about making a call to your financial advisor for an appointment to see if your investments are affected by the recent market turmoil? Most of these accounts are invested in mutual funds or ETFs. They are securities that are subject to the upsides and downsides of the marketplace and what happens to those funds. Now is the perfect time for you to understand further what you have, how it works, and how it affects you. You just can’t go around living your daily life without giving a thought at whether or not the market conditions will make you lose or grow your money.
Check out your variable annuities as well. Did you know that when the market is down the investment company still charges you with their fees even when your account’s value goes down? These are just some of the things you need to be educated on.
If you need professional help in these areas at a cost-effective rate, East Coast Tax and Financial is readily available to be of service to you.