How do you make the right choice to believe in you and your ability to invest in retirement?

Last year, when the US Federal Reserve Board announced the “Report on the economic welfare of American families,” it (based on the 2015 survey), it found that 49 percent of self-directed retirement savings of all respondents are ” no confidence “or just” somewhat confident “make the right decision.

that we are in the ninth year of a bull market only increased people’s concerns next step how to do it. Even experienced, hands-on investors can not help but ask a record of good times can last. If they stay or should go to the

If you are unsure of your plan? – Or, if you are just starting – it’s a good thing, back to basics ■ To determine how you are ready to deal with any impact of future market fluctuations.

1. Start with the big picture

Think about your time horizon (how long you have to invest), your net worth, income, expenses, and then – all this – how do you see the risk

Large most consultants talk about “risk tolerance”, and to calculate a percentage. “You can deal with a 10% drop?” They ask, because 10% does not sound like much, most investors would say yes.

I prefer to talk about real dollars. If you have a portfolio of one million US dollars, for example, I would like to ask, if you are determined to lose $ 100,000, your mind is likely to begin transferring a bit. It goes a step further, I might ask how much time you save $ 100,000, as well as many years received so much money may have been provided after retirement. This gives a significant market volatility clearer picture.

2. Next, think about what you want at this stage of your life to complete the task.

If you are looking to grow your money, you might want to take a higher return. Remember, the higher the return on your money, the more risk you have to take to get it.

If you are close to retirement or return your money you may be more interested in. With income portfolio focus, you will not see the big highs and low dips, but you should see a consistent higher yields and / or income level.

YouMay wish to design a plan that you are both income return your money, your money t return ø helped more than inflation.

3. Finally, we put it together, keep these questions in mind:

• Fluctuations in the comfort zone of what you called? How are you comfortable with how to adjust the downturn in the market or the prospect of losing money?
• How much can you really afford to lose? Do not forget to transition down, you grow when you’re close to retirement reserve amount.
• You believe in what your financial strategy? You a clear strategy that coordinates with your income plan?
• You build your “uncle” mean? Experience some discomfort is not the same as understanding when the market is down, when you actually complete. At what point would you say, “You know what, I’m out. I can not stand. I’m selling something.” Recognizing this NUMBER can keep you from making knee-jerk decisions based on emotion, but too long If the ship is going down, hanging in the

Knowledgeable financial professional can help you develop a realistic plan that will help you achieve your retirement goals. But it gives you a clear, honest establish your boundaries. If you find yourself worried that you are in the market to do the action, take some time to re-examine your motives and your mind.