Ep 31: How Should You Prepare for the Next Market Crash?

Last episode we talked about market crashes and what they are. Today we’re sharing how you can prepare yourself for possible market crashes.
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Show Notes For This Episode

On this episode of Saving the American Dream, we’re talking about how to prepare yourself for a possible market crash.

To prepare yourself for the next crash, you have two options – you can become a psychic and avoid the crash entirely (kidding!) or mentally prepare by understanding your own human behavior and how to manage that.

You need to understand the risk you’re taking in your portfolio and you can understand your potential upside or downside in any given year. Stress-test your portfolio and understand how you’ll react if it goes down.

Ask yourself how you’d feel if your money dropped by certain amounts. If it’s too much for you emotionally or financially, we need to reduce the number of stocks you have and add more bonds, for example.

The emotions of the downturns are more impactful than the emotions of the upturns. But for some people, it hits them harder when assets go up because they feel like they’re missing out.

Part of living in this world is that things go wrong sometimes and downturns happen. When you work with a good financial advisor, they can help you prepare for downturns and get through them with greater ease.

Listen to the full podcast or use the timestamps below to jump to a specific section.

Navigating the Show

[1:58] How to prepare

[4:41] Emotions

[6:59] Handling market corrections

[9:10] Downturns happen

[10:45] Help from your advisor

[11:50 ] Crashes can create opportunities

[13:47] When’s the next crash?

 

Stress test your portfolio and understand how you’ll react if it goes down.

– Michael Schulte

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Copyright 2020 Saving The American Dream Podcast. Michael Schulte is an investment advisor representative and certified exit planner with WestPac Wealth Partners, located at 330 South Center Street, Suite 344, Casper, Wyoming 82601. The podcast is for informational purposes only. Individual risks and investment objectives must be reviewed prior to making any recommendations. Podcasts are for informational purposes only. Any guest speakers and their firms are not affiliated with or endorsed by PAS, Guardian, or WestPac Wealth Partners and opinions stated are their own. Guardian, its subsidiaries, agents, and employees do not provide tax, legal or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Michael is a Registered and Financial Advisor of Park Avenue Securities LLC (PAS). OSJ: 5 Centerpointe Dr Suite 150, Lake Oswego, OR 97035, 503-207-4550. Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. WestPac Wealth Partners is not an affiliate or subsidiary of PAS or Guardian. 2022-140225 Exp 7/24