All of thenews about tariffsis rattling investors and sending the stock on a wild ride.
President Donald Trump’s “reciprocal tariffs” on numerous countries were set to go into effect on Wednesday.
But he announced a 90-day pause on them except China, which he increased to 125%.
But panic is not your friend wheninvesting.
Temporary losses don’t have to derail your retirement goals.
Here’s what I’m doing instead.
Start by reviewing your withdrawal strategy.
For example, I am pulling from cash reserves this year to give my stocks time to recover.
I also recommend delaying big-ticket purchases and large withdrawals until the market stabilizes.
I’m holding off on some travel this year and planning for 2026 instead.
Market volatility can be scary but it’s also normal.
That’s why I teach my clients to build a solidinvestment strategyto weather turbulent stock market storms.
Here are some pointers to help you avoid panic the next time the market takes a dive.
This cushion guarantees me easy access to cash for everyday expenses without needing to dip into mysavingsor investments.
If you don’t have this cushion already, I highly recommend you build this into yourfinancial plan.
Start by adding up your monthly expenses and work toward saving up to this number over time.
Stick to planning and updating your monthly budget.
Chances are, your budget for the rest of the month has nothing to do with the stock market.
If you have debt, don’t focus on the market until your everyday expenses are in order.
Here’s my advice.
That’s why the bulk of my investments are in tax-advantaged retirement accounts like our401(k)account.
Dollar-cost averaging is like buying your favorite candy with your allowance.
Some weeks, the candy costs more, and other times it’s less.
I made that mistake before and I learned the hard way not to do it again.
My husband makes investments semimonthly, and I do so monthly as a business owner.
We’re both contributing themaximum IRS limitfor this year, which is $23,000 each.
Choose reliable sources of information and avoid sensationalist news that thrives on fear.
I don’t talk about money with other investors who thrive on drama.
I also recommend reviewing your investments monthly or quarterly, not daily or weekly.
