Volatility and your time horizon

Back on January 18th of this year I sent an email talking about the state of our economy and the potential risks associated with being invested in the stock market. At the time the market was down a little over 10% and now of course the market (DJIA) is down a little over 20% from its high in October 2007. We've recently seen a major bank seized by federal regulators, inflation continues to skyrocket, our dollar is slipping so fast it could be used as the poster child for a water slide amusement park, oil continues its march upward and I wouldn't dare bring up housing, the War, Baby Boomers retiring, Social Security or Medicare.

What's the good news you ask?

As one of my clients quipped recently "the good news is I am still on this side of the lawn".

On a serious note. The volatility in the stock market is nothing new and historically over a long period of time the stock market has gone up. (Click here to read a good piece about volatility from my friends as Curian Capital.) What has changed for many of you is that every year you get older your time horizon is shrinking. One of my clients recently said "at some point you realize you have more yesterdays than tomorrows". So its important that we monitor and adjust your portfolio to your time horizon. One of the biggest mistakes I see many retirees make is being overly exposed to stock market volatility when their time horizon and return expectations don't correspond with their risk tolerance.

Financial planning is complex and each persons situation is unique. I have found from my experience of working with many retirees that as folks transition through retirement they trend toward more safety and less volatility.

I'll be holding a workshop on July 28th and 30th in Silverdale and one of the topics we plan to discuss are strategies for reducing volatility. This complimentary workshop is open to the public and as always my clients, their friends and family are welcome to attend. Click here for more information.

Hope all is well,
Jason Parker


Jason Parker is the President of Parker Financial LLC a fee based registered investment advisory firm specializing in wealth management. His office is located at 9057 Washington Ave NW #104 in old town Silverdale, WA 98383. He holds the series 65 securities license as well as being licensed to offer life and health insurance in Washington State. For more information please contact Jason at 360-337-2701 or online at www.parker-financial.net. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The opinions and information presented do not constitute a solicitation for the purchase or sale of any securities.