7 Steps to Help You Fight Through a Market Correction
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You don't like to lose money. Nobody does. That's one reason it is so hard to stick to a long-term investment plan when we feel like we're getting punched in the face by the markets. Just like a boxer, it's natural to want step back and protect ourselves. This natural reaction, however, has caused most investors to* underperform* the very assets they invest in.  In this episode, I discuss 7 steps to help you fight through a normal market correction. Invest Wisely: 7 Steps to Fighting Through a Market Correction 

A 2014 Dalbar Study ) once again showed that average investors drastically underperform the very assets they invest in. Over the last 10 years the average investors, investing in a mix of stocks and bonds, had an average annual return of 2.6%. Over that same period, the S&P 500 had an average return of 7.4% and fixed income averaged 4.6%.

One of the biggest contributors to this is our natural reaction to run from pain.  It's a strong instinct that I struggle with during every market downturn.

In this episode, I introduce 7 steps you can take to help fight through a market correction so you can invest wisely for retirement.

• STOP listening to financial media and market "experts." They only magnify your fear
• Learn the nature of the markets you invest in. Develop a clear understanding of how they work
• Determine your appetite and need for market risk. How much volatility can you stomach? How much market risk do you need to achieve your goals?
• Set a portfolio allocation that fits your needs.
• Rebalance it religiously to manage your risk and potential return goals
• Maintain enough cash reserves. This will help your long-term assets be focused on long-term objectives
• Revisit steps 1 thru 7 religiously to adjust as your life unfold.

Not sure how?  Find someone to help).

Investing wisely is easy to understand.  The hard part is sticking to a well thought out plan when you get punched in the face by a market correction.

 Plan Well: Budgets That Work With Jim Munchbach 

Recently I had the pleasure of talking with Jim Munchbach from imakeyourmoneycount.com) about how to find a budget that works for you. Jim is a Certified Financial Planner, State Farm agent) and instructor of Introduction to Personal Finance at the University of Houston.

Here are some of the topics we cover:

• Why it's important to track your spending
• Finding the truth about your financial behavior
• A budget that works), if you hate to budget
• How a budget helps you create free cash flow in order to save
• The value in learning to track your spending
• It's not the tool that is important, its the goal
• How to manager your cash flow like a business
• The law of spending and saving

Retirement Toolbox:  Retirement Planning Worksheet This worksheet may help you determine if your current retirement savings effort is on course or if you need to chart a new direction to help reach the retirement destination that you desire. To help you, I’ve added a new worksheet to the Retirement Toolbox titled *Retirement Planning Worksheet. *Click Here to Access)