Wealth Management in a Period of Extreme Volatility

March 23, 2020 – On behalf of Dopkins Wealth Management, we are sharing a chart that our investors might find useful during this period of extreme volatility.

Your 401(k) retirement savings and the investments you have selected are important to your long term investment strategy and financial well-being. The market declines experienced over the past few weeks are unsettling. Still, it is important to remember that the investment strategy you selected for your retirement is a long term strategy – despite your age or the stage of your career. In fact, short term trading has never proven to be beneficial in a comprehensive portfolio that is constructed to achieve your long term goals. At a time when our instincts might be to make significant changes to our portfolios, the best course of action is to remain disciplined and remain invested so that you can participate in the inevitable recovery.

You should ask yourself, is this money that will remain invested for the next 5, 10 or 15 years, while working or even in retirement? If it is, selling into the decline will limit your ability to recover recent losses. Going further, take a moment to review peak to trough market declines going all the way back to the Great Depression. In addition to reviewing the magnitude of the loss and of greater importance, look at the one year returns that followed those declines. You will see that, on average, the investors that take the long term approach and stay invested are ultimately rewarded for their investment discipline.

For a printable copy of this article, please click here.

For more information, contact Patrick Bohen, Senior Investment Advisor, Dopkins Wealth Management, LLC*, atat pbohen@dopkins.com.

 

* Dopkins Wealth Management, LLC is a registered investment advisor owned by the partners of Dopkins & Company, LLP.


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About the Author

Pat Bohen

Pat provides financial solutions to high net worth individuals, businesses and employee benefit plans. He has 20 years of experience in investing and wealth management.

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