Staying disciplined is crucial to short-term financial wellness and long-term financial success. Consider following these guidelines to help maintain your focus:
Don’t fixate on market swings. If you have a solid strategy that is designed to manage the effects of market volatility, do the “right” things, regardless of how the market acts. That’s not to say you shouldn’t regularly reevaluate your risk levels or consider rebalancing your portfolio, but don’t make decisions based on emotion. And don’t try to time the market; few who do succeed.
Invest prudently. The natural human tendency is to buy lots of stock when prices are rising and to stop buying altogether when prices are on the down swing. But some stock prices may provide a good value if the market drops. You may be able to buy more for the same amount of money. Just remember, it’s generally best not to purchase equities unless you plan to keep them for a minimum of five years.
Increase your savings. When we’re stressed, it’s natural to buy something fun. But try to keep splurges small and make the most of unique opportunities to save in the current situation. If you’re working from home, you’re likely spending less on gas and clothes. In your free time, you’re probably spending less on dining out, movies, concerts and travel. Try to see how much more you can put in savings because of reduced spending.
2023 Contribution Limits:
IRA/ROTH IRA $6500 catchup for age 50+ $1000
401(k) $22,500 catchup for age 50+ $7500
SEP IRA the lesser of 25% of compensation up to $330,000 or $66,000, catchup $6500
Solo 401(k) the lesser of 25% of compensation or $58,000, catchup $6500
SIMPLE plans $15,500, catchup $3500
Defined Contribution Limit: $66,000 Total Comp Limit: $330,000
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