#MarketTurbulence Tips for Thinking About the Future

Maintain a long-term perspective. It is easier to stay the course if you focus on your main life goals and not on the daily or monthly fluctuations of the market. Review your quarterly statements and stay informed about current major financial events. Plan a thorough review of your investments (asset allocation, investment performance, and progress towards your goals) once a year. For more ideas, check our financial review checklist.

Dollar-cost averaging. One of the most effective approaches to investing is dollar-cost averaging. You simply commit to investing the same amount of dollars regularly. When the price of stocks in a portfolio goes up, you will buy fewer shares, and when it goes down, you will buy more.

Maintain a diversified portfolio. Diversification reduces risk, as historically not all segments of the market move in the same direction at the same time. Losses in one area can be offset by gains in others.

Know your risk tolerance. If you find investing in stocks to be too risky for your taste (for example, if you can't sleep at night worrying about your stocks), you might want to consider a safer, more stable option.

Make well-thought-out decisions. If you make changes to your investments, do so thoughtfully and after careful consideration. Talking to a financial professional could be a good first step.