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However, dont react out of uncertainty and panic sell.
Doing so minimizes risk in case one or even two or three of your assets buckle under pressure.
Which Assets Should You Add to Your Portfolio?
To diversify your portfolio, consider adding international investments, bonds, cash, stocks or cash equivalents.
you might even go a different route altogether andinvest in real estate.
By keeping your portfolio diverse, you have many opportunities to grow your retirement savings.
If thats you, you should still take some precautions.
Diversifying your portfolio is still a key strategy, no matter what stage of retirement planning youre in.
This strategy keeps you ahead of the curve.
It sharpens your financial senses, helping you identify potential risks or crashes before they happen.
What are the advantages of rebalancing before and after a market crash?
A 401(k) rollover involves transferring your assets to another retirement plan or account.
IRAs also generally have lower fees, allowing you to make more conservative investments.
Dont Panic Sell
Never panic sell.
This is the number one thing to remember.
Panic selling makes a market downturn worse.
It also doesnt help your savings.
You may drain your savings quickly if you make hasty decisions without thorough research.
When Did Panic Selling Happen After a Stock Market Crash?
These devastating dips also affected IRA account holders, who lost nearly $2 trillion in that same year.
What To Do Instead of Panic Selling
Try quarterly balancing.
Youll be more exposed to the ups and downs of the market.
Youll learn to sell what has grown too much and buy any stocks that have fallen behind.
This is what keeps your portfolio in good shape.
Have along-term investment strategyready.
However, some errors are more common and even more dangerous to your financial health than you think.
Think beyond the short term and immediate profit.
What about the long-term?
How can you preserve what you already have and grow that for years to come?
This could be bonds, dividend stocks, ETFs and mutual funds or even real estate.
Short-term gains are risky and can have huge returns if all goes well.
On the other hand, it can also hurt your bottom line if the market drops.
Dont rely on your emotions.
Instead, try a few smart strategies.
Diversify your portfolio and try quarterly rebalancing.
Doing this may help reduce the impact of a crash on your financial situation and your accounts health.
Theres a lot at stake with your retirement savings.
Always keep an eye on how your funds are performing.
You dont have to go it alone, either.
Talk to a financial advisor about any concerns you might have.
They can help you create a long-term strategy that adjusts to any ups and downs.
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