June 15, 2021
It is human nature to seek advice when things aren’t going well or when an unforeseen event occurs. Often, people seek financial advice from a professional only when the stock market and their investments are experiencing turbulent times. Reactive decisions made during periods of stock market volatility may cause investors losses they can’t recover.
One such reaction may be an investor’s decision to leave their current financial professional and move to another who wants to change their portfolios’ holdings during a market downturn. Moving investments during turbulent market periods can damage a portfolio’s long-term performance during a low portfolio valuation.
However, not all liquidations during a down market are harmful. Some liquidations may provide tax-loss harvesting opportunities or a repurchasing of shares at reduced prices.
Here are Five things to consider regarding your retirement portfolio before the next turbulent period arrives:
Remember that the best time to make important financial decisions is during good times and not the turbulent times when your emotions can override good choices. If you have concerns about market volatility and your portfolio or your relationship with your financial professional, now is an excellent time to meet with them.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and cannot be invested into directly.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.
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