Rules for investing during volatile times

When markets are volatile, history shows that anxiety and panic can lead to poor investment decisions. Regardless of what the market is doing it's important to stick to some basic investment rules. Here are five tips to help you keep your investments on track.

1. Stick to your guns

Understand what you are trying to achieve and how long you are prepared to invest. The longer your investment timeframe, the more likely you will experience some form of short-term market volatility - make sure you are comfortable with that prospect.

2. Understand how you feel about investment risk

Your investment strategy should reflect your attitude to investment risk - for example, investing in growth assets like shares can increase your long-term returns, but it is likely you will experience greater short-term fluctuations than defensive assets like cash. Take a risk profile assessment to understand your tolerance to market volatility.

3. Invest in quality

Volatile markets are not the place for speculation, unless you are prepared to lose your money on a bet that might or might not come good. Look for quality investments and get a second opinion from your financial adviser.

4. Don’t try to time the market

Investing would be simple if you could always pick the best time to put your money in and take it out. Remember that "time in" the market, not "timing" the market, is the key.

5. Get advice from a qualified source

If you are really serious about something - whether it’s on the sporting field or in business - you should seek advice. Building and managing your wealth is no different, a financial adviser will help you make decisions which will positively impact your financial situation now and in the future. A good financial adviser will be able to talk to you about every financial decision you make from buying a new car to planning your retirement, and a truly strategic or whollistic financial adviser will also understand your tax and debt positions.

For more information contact Glenn, Jennifer or Deborah from Baker Affleck Financial Solutions.

Baker Affleck
Level 1, Solac House, 76 Appel Street, Surfers Paradise QLD 4217
PO Box 634, Surfers Paradise QLD 4217
Phone: (07) 5538 3088 • Fax: (07) 5539 0805 • Email: admin@bakeraffleck.com