When the inevitable ups and downs of the market hit the headlines — or your portfolio’s bottom line — even the calmest investor can lose a little sleep at night.
But feeling emotional about your money or the market is not necessarily a bad thing. Emotions around money are natural, and volatility in the market offers you a chance to learn more about the investing strategy that’s right for you.
“Your actual tolerance is really tested during times when the market is volatile,” says Chloe Moore, a financial advisor and founder of Financial Staples, a financial planning firm based in Atlanta, GA. “One of the greatest values a financial advisor has is acting as a behavior coach,” adds Moore. “A lot of times [investors] tend to make emotional decisions when the market is volatile, and a financial advisor can help you work through your emotions and make sure your behavior is in line with your goals."
So, how can you feel empowered to talk through your investment strategy even when the markets fluctuate? Following are seven key questions to ask a financial advisor to help guide you in making choices that are right for your portfolio, no matter what's happening in the market.