Tips for Weathering Tough Financial Times

  • By Lisa Amstutz
  • September 7, 2011
  • 273
                        
Though the economy seems to be rebounding somewhat, recent events have caused significant market volatility. Many investors find these conditions unnerving, and may be tempted to cut their losses and get out. But this really isn’t the best approach, says Jason Burkholder of New Legacy Financial Group, who has been counseling his clients to stay steady and not make rash decisions. “In the 2008 downturn, a lot of people got scared and jumped out of the market, buying in again once the market rebounded,” he said. “This is counter to what they should have done—they ended up selling low and buying high.” Instead, he recommends staying focused on what you can control: your savings rate, your asset allocation, your debt-to-income ratio, etc. Although you can’t do anything about daily market swings, you can do something about these. Burkholder stresses seven financial basics: Have a financial plan and stick to it. Live on less then you make. Have zero consumer debt. Don’t buy more house than you can afford. Have proper cash and emergency reserves. Save for the short-term and invest for the long-term. Make sure you are not paying too much for your investments. Finally, he suggests, spend time with family and friends instead of watching the latest stock market charts. “We have a tendency to get lost in the stresses of everyday life and we forget to take note of the blessings we have each day.” For more information or to schedule a free initial consultation, call New Legacy at 330-988-1060 or visit www.newlegacyfinancial.com.


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