HANDLING MARKET VOLATILITY Forbes BEST-IN-STATE WEALTH ADVISOR Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when your money is at stake. Though there's no foolproof way to handle the ups and downs of the stock market, the following common-sense tips can help. LOOK FOR THE SILVER LINING A down market, like every cloud, has a silver lining. The silver lining of a down market is the opportunity to buy shares of stock at lower prices. 2020- One of the ways you can do this is by using dollar-cost averaging. With dollar-cost averaging, you don't try to "time the market" by buying shares at the moment when the price is lowest. In fact, you don't worry about price at alL Instead, you invest a specific amount of money at regular intervals over time. When the price is higher, your investment dollars buy fewer shares of an investment, but when the price is lower, the same dollar amount will buy you more shares. A workplace savings plan, such as a 401k) plan in which the same amount is deducted from each paycheck and invested through the plan, is one of the most well-known examples of dollar cost averaging in action. DON'T PUT YOUR EGGS ALL IN ONE BASKET Diversitying your investment portfolio is one of the key tools for trying to manage market volatility. Because asset classes often String Wealth Management perform differently under different market conditions, spreading your assets across a variety of investments such as stocks, bonds. and cash alternatives has the potential to help reduce your overall risk. Ideally, a decine in one type of asset will be balanced out by a gain in another, though diversification can't DOUGLAS STIRLING eliminate the possibility of market loss. MAKING DOLLAR-COST AVERAGING WORK FOR YOU One way to diversify your portfolio is through asset allocation. Asset allocation involves Identifying the asset classes that are appropriate for you and allocating a certain percentage of your investment dollars to each class (eg, 70% to stocks, 20% to bonds, 10% to cash alternatives). A worksheet or an interactive tool may suggest a model or sample allocation based on your Investment objectives, risk tolerance level, and investment time horizon, but that shouldn't be a substitute for exxpert advice. Get started as soon as possible. The longer you have to ride out the ups and downs of the market, the more opportunity you have to build a sizable inwestment account over time. Sick with it. Dollar-cost averaging is a long-term investment strategy. Make sure you have the financial resources and the discipline to invest continuously through all types of market conditions, regardless of price fluctuations, Take advantage of automatic deductions. Having your investment contributicns deducted and invested automatically makes the process easy and convenient. FOCUS ON THE FOREST, NOT ON THE TREES As the market goes up and down, It's easy to become too focused on day-to-day returns. Instead, keep your eyes on your long-term investing goals and your overall portfolio. Although only you can decide how much investment risk you can handle, If you still have years to invest, don't overestimate the effect of short-term price fluctuations on your portfolio. DON'T STICK YOUR HEAD IN THE SAND While focusing too much on short-term gains or losses is unwise, so is ignoring your investments. You should check your portfolio at least once a year - more frequently if the market is particulariy volatile or when there have been significant changes in your life. You may need to rebalance your portfolio to bring it back in line with your investment goals and risk tolerance. Rebalancing involves selling some Investments in order to buy others. Investors should keep in mind that selling investments could result in a tax llability. Don't hesitate to get expert help if you need it to decide which investment options are right for you. LOOK BEFORE YOU LEAP When the market goes down and investment losses pile up, you may be tempted to pull out of the stock market altogether and look for less volatile investments. The modest returns that typically accompany low-risk investments may seem attractive when more risky investments are posting negative returns. DON'T COUNT YOUR CHICKENS BEFORE THEY HATCH But before you leap into a different investment strategy, make sure you're doing it for the right reasons. How you choose to invest your money should be consistent with your goals and time horizon. As the market recovers from a down cycle, elation quickly sets in. If the upswing lasts long enough, it's easy to believe that investing in the stock market is a sure thing. But, of course, it never is. As many investors have leamed the hard way, becoming overly optimistic about investing during the good times can be as detrimental as worying too much during the bad times. The right approach during all kinds of markets is to be realistic. Have a plan, stick with it, and strike a comfortable balance between risk and return. For instance, putting a larger percentage of your investment dollars into vehidles that offer asset preservation and liquidity (the opportunity to easily access your funds) may be the right strategy for you if your investment goals are short term and you'll need the money soon, or if you're growing close to reaching a long-term goal such as retirement. But if you stilhave years to invest, keep in mind that stocks have historically cutperformed stable-value investments over time, athough past performance is no guarantee of future results. If you move most or all of your investment dollars into conservative investments, you've not only locked in any losses you might have, but you've also sacrificed the patential for higher returns. Investments seeking to achieve higher rates of return also involve a higher degree of risk. If you woukd like to be added to our email list, please send an email to: TheStirfingGroupe Janney.com. Head of the Srting Wealth Management at Janney, Douglas String is Executive Vice President/Wealth Management and Chartered Advisor in Philarthropy in Jarney's Sewickley office. Recognized by Forbes Magazine as a Best-n-State Advisor, Doug's oxperience and expertise, as wel as the dedication of his team, has guided investors through some of lfe's most challenging financial situations. Stirling Wealth Management was founded on a simple belef that everyone's economic and life situation is unique. We keep that simple principle at the forefront when creating tailored fnancial plans for our clients. As veteran Financial Advisors, we have vast experience researching the marketplace and advising our clients on the products and services that best meet their needs. We are dedicated to learning about your personal goals, and together we will use that information to build a solid financial STIRLING WEALTH MANAGEMENT ar Janney Montgomry Scett LLC Janney plan focused on your specific needs. STIRLING WEALTH MANAGEMENT AT JANNEY MONTGOMERY SCOTT LLC In the photo, left to right Joe Kennedy Financial Acvisor). Douglas W. Stirling EVPIWeath Managemert, Financial Advisor). Wally Danforth (MPWealth Management, Financial Advisor) 2200 Georgetowne Drive, Sute 400, Sewickley. PA 15143 www.strlingweathmanagement.com 1 724.934.2953 i in OANNEY MONDGOMERY SCOTT LLC - MEMBER NYSE FINRA SPC wWwANNEY.COM HANDLING MARKET VOLATILITY Forbes BEST-IN-STATE WEALTH ADVISOR Conventional wisdom says that what goes up must come down. But even if you view market volatility as a normal occurrence, it can be tough to handle when your money is at stake. Though there's no foolproof way to handle the ups and downs of the stock market, the following common-sense tips can help. LOOK FOR THE SILVER LINING A down market, like every cloud, has a silver lining. The silver lining of a down market is the opportunity to buy shares of stock at lower prices. 2020- One of the ways you can do this is by using dollar-cost averaging. With dollar-cost averaging, you don't try to "time the market" by buying shares at the moment when the price is lowest. In fact, you don't worry about price at alL Instead, you invest a specific amount of money at regular intervals over time. When the price is higher, your investment dollars buy fewer shares of an investment, but when the price is lower, the same dollar amount will buy you more shares. A workplace savings plan, such as a 401k) plan in which the same amount is deducted from each paycheck and invested through the plan, is one of the most well-known examples of dollar cost averaging in action. DON'T PUT YOUR EGGS ALL IN ONE BASKET Diversitying your investment portfolio is one of the key tools for trying to manage market volatility. Because asset classes often String Wealth Management perform differently under different market conditions, spreading your assets across a variety of investments such as stocks, bonds. and cash alternatives has the potential to help reduce your overall risk. Ideally, a decine in one type of asset will be balanced out by a gain in another, though diversification can't DOUGLAS STIRLING eliminate the possibility of market loss. MAKING DOLLAR-COST AVERAGING WORK FOR YOU One way to diversify your portfolio is through asset allocation. Asset allocation involves Identifying the asset classes that are appropriate for you and allocating a certain percentage of your investment dollars to each class (eg, 70% to stocks, 20% to bonds, 10% to cash alternatives). A worksheet or an interactive tool may suggest a model or sample allocation based on your Investment objectives, risk tolerance level, and investment time horizon, but that shouldn't be a substitute for exxpert advice. Get started as soon as possible. The longer you have to ride out the ups and downs of the market, the more opportunity you have to build a sizable inwestment account over time. Sick with it. Dollar-cost averaging is a long-term investment strategy. Make sure you have the financial resources and the discipline to invest continuously through all types of market conditions, regardless of price fluctuations, Take advantage of automatic deductions. Having your investment contributicns deducted and invested automatically makes the process easy and convenient. FOCUS ON THE FOREST, NOT ON THE TREES As the market goes up and down, It's easy to become too focused on day-to-day returns. Instead, keep your eyes on your long-term investing goals and your overall portfolio. Although only you can decide how much investment risk you can handle, If you still have years to invest, don't overestimate the effect of short-term price fluctuations on your portfolio. DON'T STICK YOUR HEAD IN THE SAND While focusing too much on short-term gains or losses is unwise, so is ignoring your investments. You should check your portfolio at least once a year - more frequently if the market is particulariy volatile or when there have been significant changes in your life. You may need to rebalance your portfolio to bring it back in line with your investment goals and risk tolerance. Rebalancing involves selling some Investments in order to buy others. Investors should keep in mind that selling investments could result in a tax llability. Don't hesitate to get expert help if you need it to decide which investment options are right for you. LOOK BEFORE YOU LEAP When the market goes down and investment losses pile up, you may be tempted to pull out of the stock market altogether and look for less volatile investments. The modest returns that typically accompany low-risk investments may seem attractive when more risky investments are posting negative returns. DON'T COUNT YOUR CHICKENS BEFORE THEY HATCH But before you leap into a different investment strategy, make sure you're doing it for the right reasons. How you choose to invest your money should be consistent with your goals and time horizon. As the market recovers from a down cycle, elation quickly sets in. If the upswing lasts long enough, it's easy to believe that investing in the stock market is a sure thing. But, of course, it never is. As many investors have leamed the hard way, becoming overly optimistic about investing during the good times can be as detrimental as worying too much during the bad times. The right approach during all kinds of markets is to be realistic. Have a plan, stick with it, and strike a comfortable balance between risk and return. For instance, putting a larger percentage of your investment dollars into vehidles that offer asset preservation and liquidity (the opportunity to easily access your funds) may be the right strategy for you if your investment goals are short term and you'll need the money soon, or if you're growing close to reaching a long-term goal such as retirement. But if you stilhave years to invest, keep in mind that stocks have historically cutperformed stable-value investments over time, athough past performance is no guarantee of future results. If you move most or all of your investment dollars into conservative investments, you've not only locked in any losses you might have, but you've also sacrificed the patential for higher returns. Investments seeking to achieve higher rates of return also involve a higher degree of risk. If you woukd like to be added to our email list, please send an email to: TheStirfingGroupe Janney.com. Head of the Srting Wealth Management at Janney, Douglas String is Executive Vice President/Wealth Management and Chartered Advisor in Philarthropy in Jarney's Sewickley office. Recognized by Forbes Magazine as a Best-n-State Advisor, Doug's oxperience and expertise, as wel as the dedication of his team, has guided investors through some of lfe's most challenging financial situations. Stirling Wealth Management was founded on a simple belef that everyone's economic and life situation is unique. We keep that simple principle at the forefront when creating tailored fnancial plans for our clients. As veteran Financial Advisors, we have vast experience researching the marketplace and advising our clients on the products and services that best meet their needs. We are dedicated to learning about your personal goals, and together we will use that information to build a solid financial STIRLING WEALTH MANAGEMENT ar Janney Montgomry Scett LLC Janney plan focused on your specific needs. STIRLING WEALTH MANAGEMENT AT JANNEY MONTGOMERY SCOTT LLC In the photo, left to right Joe Kennedy Financial Acvisor). Douglas W. Stirling EVPIWeath Managemert, Financial Advisor). Wally Danforth (MPWealth Management, Financial Advisor) 2200 Georgetowne Drive, Sute 400, Sewickley. PA 15143 www.strlingweathmanagement.com 1 724.934.2953 i in OANNEY MONDGOMERY SCOTT LLC - MEMBER NYSE FINRA SPC wWwANNEY.COM