University of Illinois Extension

Saving and Investing in Turbulent Times

Take Action – Or Not

With all this information in hand, you’re probably ready to take action. You might decide to:

  • Rebalance your investments to match an asset allocation with an appropriate level of risk.
  • Dollar-cost-average out of a major holding to achieve better diversification.
  • Increase the amount of money held in “cash” so that you have an adequate emergency fund. 
  • Liquidate investments to generate cash you’ll need in the next year or so.
  • Do nothing. After evaluation, you may conclude that the best course of action is to stick to your current investments and wait for the market to recover.

Get Help If You Need It

You may feel overwhelmed with these decisions. Or you’d just like a professional to check that your plan of action won’t have any unintended consequences. A financial planner,  accountant, or other professional may be the answer. For help finding a financial professional that best meets your needs, see Choosing a Financial Professional at http://web.extension.uiuc.edu/financialpro/.

For Additional Information

Beginners' Guide to Asset Allocation, Diversification, and Rebalancing, U.S. Securities and Exchange Commission, http://www.sec.gov/investor/pubs/assetallocation.htm.

The Plan Well, Retire Well Blog: Saving and Investing Your Money, University of Illinois Extension, http://web.extension.uiuc.edu/countrysidecenter/blogs/eb141/index.html.

Choosing Investments, in Plan Well, Retire Well: Your How-To Guide (anonymous registration required), www.RetireWell.uiuc.edu.

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