Remember: patience can be your ally when it comes to stock market investment.

I understand that with the recent behavior of the stock market, you may be getting impatient. You may be thinking: “What should I do? Should I do something different? Should I get out of the market now?”

Don’t panic. Don’t make a rash decision.

Perspective: The market is going to rise and fall. Short-term stock market fluctuations happen, and they can occur quickly and often without warning.

Our Approach: The plan that you and I have created is for the long-term. We created it based on your needs and goals, and with your Time Horizon in mind. Adjusting a long-term financial plan in response to short-term market downturns can be a costly mistake.

Watch the market, but remember your TIME HORIZONS. There’s nothing wrong with staying informed or keeping abreast of the latest headlines. But don’t let today’s headlines affect your long-term outlook.

In the last year, it’s possible that the market value of your home may have dropped 10-20%. If so, did you go out and sell your home? Or did you stay put because you were confident that the housing market would one day be better? Your time horizon with your home is probably at least 6-7 years, maybe as long as 15-20 years.

It’s a similar situation with the stock market in relationship to your long-term financial goals. Your time horizon is measured in years, even decades – not months or days. A long-term investment is typically five years or longer.

The long-term potential of the market is significant. In 1982, the Dow was in the high 700s. By the start of 2000, the Dow was well above 11,000. That’s more than a 1,500% gain. Note that it took 18 years. That’s what you should keep in mind. The stock market has not built itself or sustained itself with overnight success, but with long-term investment. People have stayed invested in stocks for 20, 30, even 50 years.

Don’t get caught up in the day-to-day. Do you see the price of your home daily? No, but you can see what the stock market is doing daily. And that can make you hypersensitive about your investments. Step back from the volatility. Keep up with the news, but look beyond the moment and keep your long-range goals in mind. If you’re trying to plan for a long-term goal (like a financially comfortable retirement), it makes sense to retain a long-term investment strategy.