Summary: <br> You don't like to lose money. Nobody does. That's one reason it is so hard to stick to a long-term investment plan when we feel like we're getting punched in the face by the markets. Just like a boxer, it's natural to want step back and protect ourselves. This natural reaction, however, has caused most investors to underperform the very assets they invest in. In this episode, I discuss 7 steps to help you fight through a normal market correction.<br> <br> Invest Wisely: 7 Steps to Fighting Through a Market Correction<br> <a href="http://www.forbes.com/sites/advisor/2014/04/24/why-the-average-investors-investment-return-is-so-low/" target="_blank" rel="noopener">A 2014 Dalbar Study</a> once again shows that average investors drastically underperform the very assets they invest in. Over the last 10 years the average investors, investing in a mix of stocks and bonds, had an average annual return of 2.6%. Over that same period, the S&P 500 had an average return of 7.4% and fixed income averaged 4.6%.<br> One of the biggest contributors to this is our natural reaction to run from pain. It's a strong instinct that I struggle with during every market downturn.<br> In this episode, I introduce 7 steps you can take to help fight through a market correction so you can invest wisely for retirement.<br> <br> * STOP listening to financial media and market "experts." They only magnify your fear.<br> * Learn the nature of the markets you invest in. Develop a clear understanding of how they work.<br> * Determine your appetite and need for market risk. How much volatility can you stomach? How much market risk do you need to achieve your goals?<br> * Set a portfolio allocation that fits your needs.<br> * Rebalance it religiously to manage your risk and potential return goals.<br> * Maintain enough cash reserves. This will help your long-term assets be focused on long-term objectives.<br> * Revisit steps 1 thru 7 religiously to adjust as your life unfold.<br> <br> Not sure how? <a href="https://rogerwhitney.com/ask-a-question/" target="_blank" rel="noopener">Find someone to help</a>.<br> Investing wisely is easy to understand. The hard part is sticking to a well thought out plan when you get punched in the face by a market correction.<br> [Tweet ""We're all long-term investors until we feel short-term pain" @roger_whitney"]<br> Plan Well: Budgets That Work With Jim Munchbach<br> Recently I had the pleasure of talking with Jim Munchbach from <a href="imakeyourmoneycount.com" target="_blank" rel="noopener">imakeyourmoneycount.com</a><a href="https://rogerwhitney.com/wp-content/uploads/2014/10/Munchach.jpeg"></a> about how to find a budget that works for you. Jim is a Certified Financial Planner, <a href="https://www.statefarm.com/agent/US/TX/Houston/Jim-Munchbach-082T11YS000" target="_blank" rel="noopener">State Farm agent</a> and instructor of Introduction to Personal Finance at the University of Houston.<br> Here are some of the topics we cover:<br> <br> * Why it's important to track your spending<br> * Finding the truth about your financial behavior<br> * <a href="http://www.rogerwhitney.com/19/" target="_blank" rel="noopener">A budget that works</a>, if you hate to budget<br> * How a budget helps you create free cash flow in order to save<br> * The value in learning to track your spending<br> * It's not the tool that is important, it's the goal<br> * How to manager your cash flow like a business<br> * The law of spending and saving<br> <br> Retirement Toolbox: Retirement Planning Worksheet<br> <br> <br> <br> This worksheet may help you determine if your current retirement savings effort is on course or if you need to chart a new direction to help reach the retirement destination that you desire. To help you, I’ve added a new worksheet to the Retirement Toolbox titled Retirement Planning Worksheet.<br>
