Why it's important to stay the course through market volatility
For example, if you’re relying on a target-date fund, review its asset allocation. Make sure the fund’s target date aligns with your intended retirement year and understand how it shifts from equities to fixed income as you approach that date. This helps ensure the fund’s glide path matches your actual retirement needs.
Read more: What is wealth management, and is it right for you?
Mindset matters
In the podcast, Cherry also discussed a framework for managing your financial journey during tumultuous times and improving your relationship with money.
“Everybody needs a system,” he said, highlighting the "Six A's": admit, acknowledge, act, align, aspire, and achieve.
It begins by recognizing where you are in your financial and life journey. “It doesn’t necessarily have to be from a place of trial or suffering,” he said of the "admit" step. “It could be from a high point as well, like entering retirement.”
Next is to acknowledge your emotional state, whether that’s regret, shame, or simply a desire to improve. Cherry compares this to “cleaning the palate,” like taking a sip of water between wine tastings, to reset and prepare for what comes next.
After acknowledging their emotions, investors can act. “That’s the fun part,” he said. “Now you say, 'OK, my palate is clean. Now I can go forward.'”
The final steps — align, aspire, and achieve — are about syncing your life and money.
Cherry encourages individuals to define their aspirations: What does retirement look like? What does balance mean for members of Gen X or the sandwich generation? Then, take steps to achieve it.
He also reminds people to avoid comparisons.
“A lot of folks say, ‘I’m looking left, I’m looking right, I’m looking at the Joneses,’” he said. “My dad always says, ‘Keep your blinders on, son. Look straight.’ You have the permission to thrive and prosper the way you want.”
Each Tuesday, retirement expert and financial educator Robert Powell gives you the tools to plan for your future on Decoding Retirement. You can find more episodes on our video hub or watch on your preferred streaming service.
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