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7 Tips to Win in the Long Term

October 02, 2023

2020, 2021, 2022 and now 2023 have all been interesting years for their very own reasons. However, none of them were bad years to create and start your investing or retirement plan. But they did throw a bunch of obstacles at us in staying the course. Let’s jump into 7 tips to make sure short-term market jitters don’t change your long-term investing or retirement plan. 

Embrace the Ride:

We’ve all been there – your palms get sweaty when the market takes a dip, and the temptation to jump ship becomes almost irresistible. But here’s the truth: the most successful investors are the ones that don’t react when the ride gets bumpy. In fact, they take advantage of the fear that other investors feel when things get a little hectic. A solid investment portfolio has never been built in a day, and we all have to go through the ups and downs to reach the goal we are looking for. Just don’t panic on the way there. 

Weathering the Storm:

Short-term market conditions are like weather patterns – unpredictable and ever-changing. One day it’s sunshine; the next, it’s pouring rain. And in investing, sticking to your long-term investment plan is your best defense against these financial storms. Ignoring the day to day noise and realizing that years down the line there will be different noise just as loud that will ultimately pass as well helps in making sure you are weathering the times you need to. 

Keep Your Eyes on the Prize:

Remember why you started investing in the first place – everyone is a little different, whether it is a dream home, dream vacation, dream car, or comfortable retirement. These goals are the exact reason you have to ignore the short-term problems that come up. You don’t get to these if you react to everything that is happening today or tomorrow when we are looking years down the line. And if it is tomorrow we are looking to do this, we should already have the plan in place to make it happen.

Diversify and Conquer:

Diversification is your shield, protecting you from the reality of market uncertainty. By spreading your investments across different asset classes, you reduce risk and create a safety net, ensuring that no single market hiccup can throw your entire portfolio off balance.

Rebalance and Adjust:

As we go through month to month, quarter to quarter, year to year – rebalancing your portfolio – helps you stay on course. Regularly reviewing and tweaking your asset allocation ensures it aligns with your risk tolerance and long-term objectives, no matter how choppy the waters get.

Patience is a Virtue:

This is probably the hardest thing to remember, short-term market conditions are but fleeting moments. The market will rise, and it will fall, but time is on your side. The power of compounding, coupled with a pinch of patience, can work wonders for your wealth.

Stay Resilient:

Lastly, be resilient. The financial journey is filled with ups and downs, but maintaining a commitment to your plan can turn the bumps along the way into valuable learning experiences.

Ultimately, the journey of investing is as exciting and rewarding as it gets, if you think long term. Embracing the volatility, staying committed to your goals, and maintaining a diversified, balanced portfolio are the keys to weathering short-term market conditions and making sure our long term plan works perfectly.