Weekend Reading: Example 1A: Why You Stay the Course

This article appears as part of Casey Weade's Weekend Reading for Retirees series. Every Friday, Casey highlights four hand-picked articles on trending retirement topics and delivers them straight to your email inbox. Get on the list here.
Weekend reading why you stay the course Weekend reading why you stay the course
Weekend Reading

You’re well aware that 2022 was a challenging year for investments, particularly for stocks and bonds. But if this period taught you anything, it should be that the true cost of long-term investing is psychological, and enduring short-term pain can lead to long-term success.

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Focus forward: While it can be a difficult motive to overcome, avoiding emotional reactions during times of market volatility is key. This article highlights data showing that investors who stayed the course during difficult market times in 2022 saw significant gains this year. The lesson? Sticking to your plan is often the best strategy for long-term success, but if you feel the need to take action, you can also consider strategies like tax-loss harvesting or rebalancing.

Are you allowing emotions, uncertainty or fear-inducing headlines to deter you from your investment plan? If so, you could be missing out on valuable opportunities. Investing may not always feel comfortable, but if you have a personalized strategy, you’re more likely to feel committed to your long-term plan.