Market volatility : How safe are your retirement savings?

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Question: What is studied, analyzed, discussed and fretted over by more people than any other
activity on the planet? Answer: The rise and fall of financial markets.

Despite this broad following, many investors are still surprised (and even shocked) when the
markets drop – like they have in past weeks.

The market volatility (ups and downs) has lots of investors stressed and a little uncertain about
how to respond. We’ve all heard the adage, “buy low and sell high.” Unfortunately, the knee-jerk
reaction for individual investors who manage their own portfolios is to do just the opposite.
They tend to:

  • sell the equities that have sunk, and
  • buy fixed income investments to float through the rough waters.

As a result, they lock in their investment losses and overpay for the short-term security that comes
with fixed income investments. In essence, they sell low and buy high.

It’s precisely for this reason that investment professionals urge us to stay the course and keep a
long-term focus. And that’s precisely what your Silver Thatch Pension Plan does.


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