Keys to Retirement Planning and Investing

Patience is a virtue

Don't try to move your investments every time the market changes... remember, you're in it for the long haul.

How will you react to a 20% decline in the stock market? It may be painful to watch your account value decline from time to time, but if you stick with a disciplined long-term investment strategy, you may make that money back and more. So, unless your long-term strategy has changed, you should resist the urge to "time the market."

What's the matter with market timing?

Market timing is trying to move out of riskier investments such as stocks when the markets start to go down, and jumping back in when the markets start to move back up.
Market timers have to be right twice. They must know when to sell their investments and when to buy them back. Since they don't have a crystal ball, the task is nearly impossible.
In the past, the stock market has gone up over time. This is good for investors who can stay invested in the stock market over the long haul. Keep in mind that you may live many years past retirement age — and you don't have to pull out all your money right away!

For one-stop shoppers: balanced funds

If you're nervous about deciding how to react to the ups and downs of the market, there are other options. Balanced funds provide a simple and inexpensive way for you to keep to a realistic and balanced long-term investment strategy. They diversify by investing in more than one asset class. They also keep the mix of these investments balanced over time, so you don't have to.

Do a realistic gut-check on your risk tolerance

You will need to take some risk to meet your long-term goals, remembering that markets will rise and fall over time. If you're a conservative investor, make sure you're able to handle these changes before you invest heavily in stocks and stock funds. If you're unable to tolerate an extended market loss, you might end up panicking and making bad market timing decisions by selling when stock values are temporarily low.


The MyFRS Financial Guidance Program has resources to help you design a realistic and balanced long-term investment strategy that you can stick with through thick and thin. The resources will also give you guidance on when you should change your strategy.