Masterfile
Stock markets have been on a wild ride lately — and investors have been right there with them on an emotional rollercoaster. It’s not just Bay Street types who are stressed — I have non-finance friends calling me to say that markets are keeping them up at night. They’re worried their RRSPs are going to plunge into oblivion and that financial Armageddon is around the corner.
Their reaction to gyrating markets isn’t surprising — news outlets are hyper focused on stock markets and they’re covering every drop in the Dow as if it’s the end of the world.
But while global financial markets look pretty gloomy, you need to keep perspective. One way to do this is to call your advisor and make sure your portfolio is on track and invested in the right place.
This article by Deanne Gage at Brighterlife.ca offers helpful tips for breaking the ice when talking to your advisor about your investments.
She’s come up with these four questions that you should ask your advisor about bumpy markets and your portfolio:
In other words, you need your advisor to tell you whether or not your money is the right place for you, given the market ups and downs we’re going through. And, if not, what can you do with your money to let you sleep better at night?
And no, putting all your money into a savings account (or under your mattress) probably isn’t the best option if you’re saving for a long-term goal like retirement — don’t forget, your money needs to be invested so that it keeps up with inflation and gives you a decent income when you stop working. A bank account that pays less than two or three percent won’t cut it.
So if you’re getting an ulcer watching the financial news, turn off the TV — and call your advisor right now. After all, that’s what you pay them for!
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