If you’re a former military servicemember and an investor, market volatility may create stress and anxiety, tempting you to stray from your plan. However, financial planning for military Veterans and families with AAFMAA Wealth Management & Trust LLC (AWM&T) can help you avoid expensive mistakes during market uncertainty.
Market volatility can be particularly challenging for former servicemembers living on a fixed retirement income, including investments. Reacting with a degree of fear to downturns in financial markets is common, but it doesn’t have to rule the day.
AWM&T’s financial planners have in-depth knowledge of military benefits and vast experience in financial planning for military Veterans and families. As a result, we understand the anxiety volatile markets can bring to the surface for you.
High interest rates and stubborn inflation continue to have investors, including military Veterans, guessing about the U.S. economy. But military financial planning can help you stay grounded through strategies that can keep you well on the road to experiencing the financial future you want. Here is what you need to know about safeguarding your future during market volatility.
What Is Market Volatility?
Market volatility is the frequency and degree to which prices on financial markets move — up or down. Bigger and more frequent moves indicate a more volatile market. Individual stocks can also be“volatile”. You can check the volatility of the market or stock by gauging how far away the price moves from the average for the market or stock.
Volatility in the market is common. Big events that cause financial markets to move beyond acceptable variances from averages can feed anxiety. Most major stock indices don’t swing by more than one percent in a trading day, but large swings of 5% or more can drive uncertainty, leading to panic buying and selling.
A volatile market can feel understandably daunting. Through financial planning for military Veterans with AWM&T, however, you can take comfort in knowing the plan you develop for your unique situation is built on investing principles designed to weather volatile markets.
Investing comes with risks. However, strategies developed through sound military financial planning can mitigate risks, allow you to capitalize on market movements, and help you make sound choices for your investment portfolio.
How to Handle Market Volatility
Financial planning for military Veterans and their families emphasizes applying these key investing principles when uncertainty hits the market:
- Stay focused on long-term goals
- Avoid making investing decisions during emotional periods
- Understand the history of market movements
- Maintain a diversified portfolio
- Get clear and timely advice
No matter your financial goals, a disciplined, long-term investment strategy can help you successfully navigate volatile markets.
Why Does Market Volatility Matter?
You might concern yourself with market volatility when stocks and other assets are moving down. Keep in mind that volatility involves prices moving up, too.
Think about the price movements of stocks in terms of risk vs. gain. For instance, stocks with bigger and more frequent moves might be riskier but also have the potential to produce higher returns. On the other hand, stocks with smaller, less frequent movements are less risky, with the potential for smaller returns.
Which one you choose is neither good nor bad, but a matter of weighing your risk tolerance, investing horizon, and financial goals.
Consider Financial Planning with AWM&T
If you’re concerned about market volatility or the impact of high interest rates and continued inflation on your investments or the economy, consider talking to a financial planner. At AWM&T, financial planning for military Veterans and families is what we do. Our approach to military financial planning involves focusing on long-term investing for volatile markets and creating strategies specific to your financial situation and goals.
AWM&T exclusively serves military families just like yours. We’re here to deliver the wealth management solutions and the specialized financial advice you need and deserve. To get in touch, call 1-910-307-3500 or click here to speak to a professional. Or learn more about us and your options on our website.
About Us
AWM&T was created in 2012 to meet the financial needs of military families. We provide experienced, trustworthy, long-range financial planning, investment management, and trust administration services to support financial independence and security. We aim to be the premier provider of fiduciary services by always working for AAFMAA Members’ best interests.
We are proud to share the mission, vision, and values of AAFMAA, our parent company, consistently building on AAFMAA’s rich history and tradition to provide Members with a source of compassion, trust, and protection. Through AAFMAA’s long-standing legacy and our financial expertise, AWM&T is honored to provide personalized wealth management services to military families across generations.
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