An extended period of volatility in the investment markets can test even the coolest heads. Dealing with volatility can be difficult for experienced as well as novice investors. These time-proven tips can help you and your portfolio survive the recent volatility and future market turbulence.
Keep a Long-Term Perspective
Don't allow the market's ups and downs make you lose sight of the reason you are investing in the first place: your future retirement. When you have many working years ahead of you, retirement is a long-term goal. Over the long term, stocks have historically earned higher returns than more conservative investments, such as bonds and cash.* While there is no guarantee that history will repeat itself, the record shows us that a recovering and growing stock market has always recovered after a correction (or decline).
Review Your Asset Allocation**
As a retirement plan investor, you can diversify on multiple levels. When you invest in a fund that holds multiple individual securities, you can obtain a measure of diversification.** You can further manage the risk level in your portfolio by investing in different asset classes. The theory behind diversification is that declines in one investment or asset class can be offset by the performance of other investments and asset classes that do not decline or decline only marginally.
Want More Information?
For additional help, consider talking to a financial professional, who can help you monitor your progress with your retirement savings and other areas of your financial life.
Every situation is unique, so be sure to consult a professional before taking action. Contact Popular’s Retirement Center at
educacionretiro@popular.com. If you have a 401k plan with Popular, remember that you can count on our group of experts at TeleBanco Popular® to guide you on matters related to your retirement plan. Call us at
787-724-3657 (press option 2 three times).
| Average annual total returns for the period ended 12/31/2021
Source: Bloomberg |
|
S&P 500 Index |
Bloomberg US Aggregate
Bond Index |
| 20 years |
9.51% |
4.32% |
| 10 years |
16.53% |
2.90% |
| 5 years |
18.45% |
3.57% |
| 1 year |
28.68% |
-1.54% |
| Year-to-date return for the period ended 3/11/2022
Source: Bloomberg |
|
S&P 500 Index |
Bloomberg US Aggregate
Bond Index |
| 12/31/2021 – 3/11/2022 |
-11.53% |
-4.79% |
Source: Bloomberg
*Past performance is no guarantee of future results. Stock investing involves a high degree of risk. Stock prices fluctuate, and investors may lose money.
**Asset allocation and diversification do not ensure a profit or protect against loss.
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The information and general descriptions found in this article are designed to help you understand some of the factors you should generally consider when evaluating the appropriateness of any strategy or investment within your retirement plan. Any description included is for informational and educational purposes and for your independent consideration only; it is not to be regarded or viewed as advice or as a suggestion to take (or refrain from taking) any particular action. By providing this information, we assume that you can evaluate this information and the general descriptions found here to exercise your independent judgment. Banco Popular de Puerto Rico, its subsidiaries and/or affiliates are not engaged in rendering legal, accounting or tax advice services. If legal, accounting, or tax advice services are required, you should seek the services of a competent professional. Insurance and investment products are not insured by the FDIC, they are not deposits or obligations of, nor are they guaranteed by Banco Popular, its subsidiaries and/or affiliates. Investment products may lose value. Some insurance products may lose their value.
