Market volatility

7 ways to prepare for market volatility

The market can be unpredictable. It can be up one day and down the next. Let’s look at what strategies may keep you building wealth in any market!

1. Build your financial foundation before investing

Consider building liquidity for emergencies and opportunities before making other, less liquid investments. This should give you the flexibility to weather financial storms and take advantage of lucrative opportunities that may come your way.

Saving before investing also helps protect the investments you’ll be making. Begin with cash and a savings account for “everyday emergencies.” For long-term savings, consider dividend-paying cash value life insurance policies for increased protection and tax-deferred growth within the policy.1, 2

2. Live beneath your means

We know this is personal finance 101, but it bears repeating: Americans have a low savings rate compared to people in other countries. This may cause issues, such as a lack of adequate emergency funds, which can lead to debt, bankruptcies, and poor life-choices.

People tend to equate wealth with income. However, it’s hard to build wealth if you don’t look at what you're spending. It’s important to

  • Know where your money is going.
  • Have clarity on needs vs. wants.
  • Maximize tax incentives.
  • Spend less than you earn.

Living beneath your means may also make you a better investor. You’ll feel less compelled to chase unrealistically high rates of return if you save a higher percentage of your income.

3. Take control of your income

The wealthy rarely have only one source of income, and often have a high level of control over their income. Business owners and salespeople tend to make more than typical employees.

Already have a job you love? Consider starting a part- time business on the side. Even if you are a full-time student or stay-at-home parent, there are ways to earn money on the side, from being a weekend Uber driver to freelancing, consulting, or tutoring.

Take control of your income and protect your wallet.

4. Protect your loved ones

The average American earns millions of dollars over a lifetime. Chances are, YOU are your most important financial asset. If your partner, spouse, or children would be affected if you were no longer around or able to work, consider whole life, and/or convertible term insurance and disability insurance as ways to best protect your income. Your most important assets — financial and familial — are worth protecting.

5. Consider diversifying outside of the stock market

We all understand the concept of not putting all your eggs in one basket. Yet too often, investors interpret this to mean they should simply diversify their stocks. Being truly diversified means investing in different asset classes, not simply different types of stocks or mutual funds.

Asset Allocation: People focus on stocks (equities), bonds, or fixed income with bank accounts or CDs (cash and cash equivalents.) There are other alternatives for growth, income, and cash.

Don’t neglect the asset classes that have helped people build sustainable wealth over time. Reach out to a financial professional for more information.

6. Invest in non-correlated assets

The stock market violates the principle of maintaining control of your investments. Instead, consider non- correlated assets that won’t be a roller coaster ride with stocks.

Get more information and ask questions to make informed decisions.

7. Guard your mindset as well as your money

It’s not just portfolios that can suffer from economic, political, or personal upheaval. Stay positive, be grateful, and focus on the things — and especially the people — that matter most to you.

Stress can take a powerful toll on our mental, physical, and emotional health. We have a higher capacity to succeed in our careers and businesses when we don’t allow ourselves to become bogged down with negativity and drama.

Talk to a Park Avenue Securities financial professional to learn about strategies that may help you combat market volatility.

1 Dividends are not guaranteed. They are declared annually by Guardian’s Board of Directors.

2 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.

Past performance is not a guarantee of future results. Indices are unmanaged and one cannot invest directly in an index. All investments contain risk and may lose value. Equities may decline in value due to both real and perceived general market, economic and industry conditions.

Material discussed is meant for general informational purposes only and is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please note that individual situations can vary. Therefore, the information should be relied upon only when coordinated with individual professional advice. Links to external sites are provided for your convenience in locating related information and services. Guardian, its subsidiaries, agents, and employees expressly disclaim any responsibility for and do not maintain, control, recommend, or endorse third-party sites, organizations, products, or services, and make no representation as to the completeness, suitability, or quality thereof.

Securities products/services and advisory services offered through Park Avenue Securities LLC, a registered broker-dealer and registered investment adviser. Park Avenue Securities is a wholly owned subsidiary of The Guardian Life Insurance Company of America and is located at 10 Hudson Yards, New York, NY 10001. Member FINRA, SIPC.

This website is intended for general public use. By providing this content, Park Avenue Securities LLC is not undertaking to provide investment advice for any specific individual or situation, or to otherwise act in a fiduciary capacity. Please contact a financial representative for guidance and information specific to your individual situation.

Pub11184 (7/23)

2023-159203 (Exp. 7/25)