A new presidential administration always brings with it some degree of investment uncertainty. While there's no way of predicting how things will play out in the financial markets in the coming months, it's important to remember that market shifts are a natural part of investing. Allowing yourself to become unsettled by volatility will likely lead to rash decisions that can disrupt your long-term plans. Instead, try to stay focused on what you can control.
That means saving consistently for your goals—regardless of the market's inevitable ups and downs—and sticking with your plan. Market fluctuations can also offer occasional buying or selling opportunities to reallocate your portfolio and help you stay on track. For example, realizing losses can not only help bring your portfolio back in line with your risk tolerance, but also can be used to offset taxes on capital gains or ordinary income.
Finally, I encourage you to reach out to your financial consultant anytime you need a gut check or a sounding board. We're here to help you ignore the noise and keep your focus on what matters most: your financial future.
Charles R. Schwab
Founder & Co-Chairman