A Financial Checklist for Market Volatility
Navigating market changes can feel overwhelming. Use this simple checklist to break the process down into manageable steps.
First, review your budget and define your needs. Understand exactly how much money you need from your portfolio each year to live comfortably. This is the foundation of your plan.
Second, calculate your cash buffer. Set aside one to three years’ worth of those necessary living expenses in a safe, easily accessible account. This is your primary shield against being a forced seller in a down market.
Third, assess your current asset allocation. Look at your investment statements. What percentage of your money is in stocks versus bonds? Does this percentage align with your risk tolerance as a retiree? If not, it is time to make a change.
Fourth, check for diversification. Do you own a healthy mix of different types of stocks and bonds, or are you heavily concentrated in just a few investments? A lack of diversification is a hidden risk.
Finally, schedule a review with a trusted financial professional. A fee-only certified financial planner can provide an objective second opinion on your strategy and help you implement any necessary changes. For official information on Social Security and Medicare, visit SSA.gov and Medicare.gov. Federal tax information is at the IRS.
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