The market is in a correction. Everyday you hear some kind of bad financial news. Well, it’s o.k. to feel nervous-who wouldn’t be? In times like this you need a cool head and we’ll gladly take the role. We’re talking about mutual funds, of course, and more specifically your Employee Retirement Plan (401k,403b,457b).

First, take a breather and relax-never make an emotional or reactionary decision that could cost you later. Are you tempted to put your retirement money in cash? Don’t do it-it’s a mistake. When the stock market corrects itself-and it will, you’ll be late to the party and miss the upswing.

The great thing about mutual funds is they can be diversified to buffer your portfolio from market volatility, such as we’re seeing now. Rather than getting scared off, put your attention to making sure you have an asset allocation of high quality mutual funds and the proper diversification. With a well-balanced portfolio you can put your mind at ease, as you weather the market’s wild roller coaster ride.

So, if you haven’t done so yet, now is the time to take a look “under the hood” and based on your age, risk tolerance and a few other key factors, develop a plan. And while it may sound self-serving, the best way to do this is to seek the help of a professional investment advisior. Right now is the best time, because you’ll be buying those great funds on sale (everybody loves a sale) and through the magic of time, dividend reinvestments and compounding, you’ll be happy you didn’t make a snap decision.

Thomas Chipain
President & Investment Advisor