Navigating Stock Market Volatility: The Risk Management Rollercoaster
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In this episode of 'Getting Retirement Right', a risk-averse protagonist is challenged to shift their mindset towards retirement and overcome their fears of volatile markets, as they strive to build a plan that will protect their hard-earned money and ensure a successful future.
Hosts Darrin McComas and Shon Peil discuss the importance of having a plan for retirement and understanding the risks associated with stock market investing. They explain that banks are facing major issues, creating a lot of uncertainty and lack of confidence in the financial system.
They highlight the fact that stock markets have seen huge drawdowns, followed by wild bounces, and that it is typical of a bear market. They also touch on the interest rate issue, the housing market issue, and how risk is emotional and can change over time.
Lastly, they emphasize the importance of having a risk management process that is based on real numbers and data, not narratives or emotions, and having a financial advisor who can provide guidance. "It all starts with having a plan. And your money needs to have a plan too. You can't have all your eggs in one basket or all your eggs in one portfolio model or a basket of stocks." In this episode, you will learn the following:
- How is the current financial system creating a lack of confidence and panic?
- What is the best approach to money management during a volatile market?
- Is having a retirement plan enough to ensure financial success in retirement?
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