Are You Worried About Market Volatility?

How can you protect your financial investments from market volatility? We talk about whether you should worry about it and what wise decisions you can make now that will pay off in the long run.

Honest Takes:

Shark Tank’s “Mr. Wonderful” Kevin O’Leary doesn’t seem too concerned about market volatility, but is he right? Most people don’t have the same net worth of $400 million, so his experience will be different than the rest of us. Should you stay the course like him when it comes to your investments?

Look at what you’re using the money for. Every dollar should have a purpose. Do you need the money now or in 20 years? Do you need to take the risk on your account? Brian shares about a client who had a more aggressive portfolio than they needed or wanted. Working with an advisor to assess your comfort with risk may help you better align your investments with what you feel comfortable with.

Not only do you want to look at and understand your risk, but consider your entire financial plan. Don’t work with an advisor who only looks at your investments. Make sure to consider things like your taxes or estate plan or special situations unique to you. Your plan shouldn’t be a “set it and forget it” plan, you have to update it periodically.

For instance, will a proposed new tax bill end Roth IRA conversions for everyone? If so, what do you need to do now? High-income earners would often do a “backdoor Roth” by converting. Consider what happens if the government raises taxes, which looks likely. Start looking at converting with that in mind. Time will tell whether or not the new tax bill takes away the Roth conversion, but regardless, you need to think about your long-term financial strategy today.

Listen to the entire episode or skip ahead using the timestamps below.

[0:13] Should you be concerned about market volatility?

[3:59] What should a financial advisor help you consider?

[6:19] Are Roth IRAs on their way out?

Today’s Truth:

“You need to look at what you’re using the money for. Every dollar should have a purpose.”

Brian Bowen


The Host:

Brian Bowen – Contact