April may bring May flowers, but in the stock market, it often brings a storm. Historically, April has seen notable volatility, with sudden swings shaking investor confidence. For example, April 2020 had a remarkably high volatility reading due to the COVID-19 pandemic. Market ups and downs in April may make you wonder if your retirement plans will bloom as expected. It’s uncomfortable when economic changes cause your savings to decline. At Global View Investment Advisors, we understand these concerns and are here to help you navigate market volatility with confidence.
Market volatility encompasses frequent and dramatic movements of investment markets that arise from economic shifts, geopolitical events, or a change in public attitude. Market swings are natural events; however, they might be of special concern for retirees with stable sources of income that they will rely upon for the rest of their lives. Significant drops at the start of retirement will disrupt your original strategy and may force you to cash out your assets at lower values, which will influence future security. The fear of volatility sometimes spawns the irrational selling of investments at a loss.
There is no substitute for an integrated financial plan. A properly constructed plan includes goals for retirement, risk exposure, asset management, and tax-efficient strategies. The plan supplies a long-term direction that will keep you on track during volatile markets. The right plan will leave you with adequate cash reserves, diversified investments, and strategies that optimize income sources. Global View will take the time to get to know you and construct a custom strategy that balances stability and growth. A good plan buffers against volatility and fosters confidence during times of uncertainty.
Selecting the correct financial planner truly matters. We're a fee-only fiduciary advisor firm located in Greenville, SC, and we offer independent and transparent advice that prioritizes your interests. We are not in the conflict-of-interest category that results from working with commission-based planners. They might be inclined to steer you toward a particular product that earns them higher fees. Instead, we offer advice to help you reach your goals. Our local experience lets us design strategies specifically targeting the needs of retirees in the Greenville area. We help with investment management, long-term care planning, and the optimization of income during retirement.
One of the greatest tools we use to mitigate investment risk is diversification. Spreading investment among asset classes—like stocks, bonds, real estate, and alternatives—limits the total volatility within your investment portfolio. Asset classes perform differently based on the state of the market and the economy. If some fall, others will stay steady and potentially even appreciate in value. We at Global View construct diversified investment portfolios based on your objectives and risk tolerance to provide stability during uncertain times.
Your investment needs and the state of the markets change, necessitating regular reviews of your portfolio. Through periodic evaluation of the investments, we determine how to rebalance your portfolio and realign it with your long-term goals. Market movements will sometimes leave asset classes over- or under-weighted and exposed to added risk. Our active management ensures that your investments stay true to your investment strategy.
A strategy for sustainable withdrawals is critical to long-term fiscal stability. We help identify a suitable withdrawal rate that you’re your expenses and preserves capital. Through a percentage-of-wealth plan, a bucket strategy, or dynamic adjustments based on the state of the market, we aim to avoid depleting your savings too quickly. Planning withdrawals with prudence helps ensure that your retirement income does not dwindle unnecessarily.
A long-term outlook on investment management during retirement years is critical. Market declines are transitory, and historically, the markets will correct and move higher with time. Emotional responses to short-term volatility can get you into trouble and prompt you to make avoidable errors. These include selling at a loss or converting into conservative investments that constrain growth. Global View helps you stay disciplined and avoid short-term noise, instead keeping a long-term perspective on your money. We play the part of providing stable and knowledgeable advice so that you will be able to follow your investment strategy confidently.
We at Global View Investment Advisors know that a stable financial foundation is the backbone of a fulfilling retirement. We're not just planners; we're trusted partners who will guide you through retirement with experience and compassion. Our thorough planning provides the tools and advice that will enable you to live a secure and fulfilling life in retirement. Are you ready to move beyond volatility? Contact us today to arrange a free consultation. Let us help you weather volatility and live the retirement of your dreams with confidence.