Volatility may best describe the equities markets for the majority of 2015, as they were impacted by economic stress in China and Greece, coupled with underwhelming corporate earnings reports, falling oil prices, and terrorist attacks here and abroad.
As the markets rise and fall, your portfolio will gradually move away from its target allocation. This is important to note because, as an investor, your investments should be allocated according to your risk tolerance, time horizon, and personal goals.
Market volatility, like the roller coaster experienced last week, can test even the calmest of investors. Constructing and following a sound asset allocation strategy for your long-term retirement goals will provide peace of mind even during extreme market movements.
Although many firms offer TPA services to retirement plans, not all offer the same quality of services due to the nature of their business. One major example of this is payroll providers.
Target Date funds have been growing in popularity for the last decade. Their rise in popularity can be attributed to a number of factors, however their “auto-pilot” or “hands-off” approach is what has led many investors to choose these funds for their retirement portfolios.
It is almost impossible to turn on the TV, radio, or the internet without seeing financial headlines that are intended to influence investors’ portfolio decisions.