Given the current market volatility, this can be an unnerving time to be invested in the stock market but for educated long-term investors this can be a great time to confirm that you are invested properly.  Below are a few things to remember.

• Unless you are within 5 years of retiring, your investment allocation needs to have a sufficient allocation to stocks in order to provide the long-term growth in your account that will be needed to meet your retirement goals.  As the investment fiduciary on the plan, we would recommend individuals having anywhere from 70 – 100% of their account in stocks to provide this growth.
• When the market is down like it is, the only change you should make to your investment allocation is to increase your stocks, NEVER to decrease your allocation to stocks
• During these times, although it will be disappointing to see how your account balance has dropped, remember that you are buying into stocks at a substantial discount – “Stocks are on SALE!!”
• Although dealing with the Coronavirus is new, market volatility like this is fairly common.  When the stock market drops by more than 20% it is called a “Bear Market”.  These types of market declines happen approximately every 5 -10 years. 
• If you are within 5 years of retiring, you should lower your stock allocation to 50% but not until we get through this rough patch.    

If you have any questions please email:

Harmony Wagner – hwagner@bouchey.com     

Paolo Lapietra – PLapietra@bouchey.com