One Important Reminder About The Stock Market And Your Retirement
The world’s most successful investors take a long-term view. They buy and sell like collectors, not gamblers. When faced with the bombardment of news on inflation, employment, recession speculation and interest rate movements, these investors are able to contextualize these factors and tune them out. This article explains how leading indicators are often already priced into markets and therefore should not influence your day-to-day financial decisions. If you are among the well-intentioned who get distracted by news and media, consider developing an income strategy long enough to enable yours to tune out the noise. If you are gainfully employed, that income strategy might simply be your emergency fund – enabling you to manage expenses in case of a financial emergency such as temporary unemployment or an illness. If you are retired, consider how you will meet expenses for at least 1 – 2 years through a combination of pensions, RRIF withdrawals and more tax-advantaged sources. Knowing that the news will not affect your day-to-day financial situation is a powerful way to keep your financial strategies on track.
