THE new year has started with a great deal of uncertainty following the enormous volatility experienced in 2018. Last year there was an abundance of global economic uncertainty, political changes, and sharp market movements among other things. These would have left many investors feeling stressed. If one blinks, one may miss something and this makes us feel uneasy and worried.

There would be heightened concerns for retired investors who depend on their investment portfolio and other income streams to live. In addition to the natural worry that heightened volatility causes, there is also a fear of missing out (FOMO) on opportunities in the market.

FOMO drives the behaviour of a lot of investors. While financial volatility is the norm these days, we need to look at not getting so stressed out because this may lead us in the wrong direction.

So today we are looking at staying calm in the storm, especially as it relates to investors who are retired. At this stage of life, managing one’s finances is at the forefront of one’s mind.

Fortunately, many investors who are officially retired have continued to work, many of them providing consultancy services or keeping busy with other means of employment to stay busy, keep fit and continue to save.

We do know that as you get closer to retirement your investments become less aggressive. At this stage you feel the need to reduce your positions in stocks and move to more stable investments like bonds and money market instruments. Experts will suggest, nudge or tell you to invest in some good bonds and make selective short-term investments with a mix of real estate investment.

Always question how stable your portfolio is for the long years ahead. Ask yourself if you are diversified enough to take the hits and misses. Is my portfolio allocation so high risk that I can’t sleep at nights? Would I be able to withstand a loss of more than 50 per cent should the market plummet? Can I recoup?

http://www.jamaicaobserver.com/sunday-finance/investment-strategies-for-retirees_155016