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Ignoring the Hype

Posted: January 10, 2018

Information about where the market is headed next and which investments are "hot" is just about everywhere: on TV and the radio, in newspapers and magazines, and in the ads that pop up on your computer. Understandably, you might think from all the hype that successful investing is a matter of frequently trading in response to the daily news. However, long-term, strategic investors have a plan and don't let the news dictate how they manage their retirement savings.

Market Volatility

If the stock market is headed up, you might be tempted to pull money from your investment s elsewhere to see if you can gain from the market's upward momentum. And when stocks are falling, getting out of your stock funds may seem like the best thing to do with your retirement money. But behind either move is the assumption that today's investment conditions will continue in the future. And that thinking is just as likely to be wrong as right.

You should expect period s of market volatility when you are investing to reach long-term goals. While such fluctuations are sometimes exciting (an d sometimes unsettling), you don't want to let them distract you from the long-term trends in the market. Try to redirect your attention to the "long game" - where you want to be at retirement.

Strategic Allocation

Strategically allocating your investment s among stocks, bonds, and cash alternatives can help you stay on track. The idea is to take into account the long-term risks and potential rewards of various asset classes and combine them to suit your individual objectives.

Diversification Protection

However you decide to allocate your plan investments, make sure they're well diversified.* Diversification is spreading your retirement money among a variety of investments to help protect your portfolio from a loss in any one particular investment.

Invest for Your Long-term Goals

Fluctuations in the market will produce much hype - every day generate s a new headline and new speculation about the market's direction. However, you want to focus not on what is happening from day to day but on what the market can do for you over the long term. Using strategic allocation and diversification can help you ignore the hype and stick with your long-term plan.

*Diversification does not ensure a profit or protect against loss in a declining market.

Modified content. Copyright© 2017 by Newkirk Products. Reprinted with permission. All rights reserved.

Securities are sold and investment advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC Insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CBSI is a registered broker/dealer in all fifty states of the United States of America. The representative may also be financial institution employee that accepts deposits on behalf of the financial institution. Representatives are neither a tax advisors nor attorneys. For information regarding your specific tax situation, please consult a tax professional. For legal questions, including a discussion about estate planning, please consult your attorney. CBSI-1980598.1-1217-0120

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