Staying the Course through Volatile Markets

May 23, 2025

Turbulent times can bring turbulent markets. Many factors cause chaotic swings in the investing world including housing, political elections, and international instability.

Despite the financial queasiness this can have, experts consistently have one piece of advice for investors: stay calm and stay the course. Maintaining a long-term investment strategy can help weather the storm of a volatile stock market, whereas reacting irrationally or panicking is the last thing investors should do.

History tends to repeat

There are a few ways to keep nerves at bay amidst a sea of daunting headlines.

First, a historical review shows that market fluctuations are normal. This should serve as a comforting reminder during unstable conditions. According to Fidelity, “...while market downturns may be unsettling, history shows stocks have recovered and delivered long-term gains.”1

While no one can predict the stock market with absolute certainty, the significant crashes of the last century all saw periods of recovery. For example, after the 2008 market crash, the recovery began almost immediately and achieved an eventual increase of 178% in 5-year returns.2

These past events reinforce the importance of focusing on long-term financial strategies and goals, not short-term fluctuations. The markets will have bull and bear runs which need time to play out without trying to anticipate short-term trends.

However, past performance is no guarantee of future results.

Don’t try to catch a falling knife

Another potential mistake that investors can make is to stop saving during a market downturn.

A popular way to continue savings momentum when nerves are being tested is dollar-cost averaging, or in other words, investing a fixed amount on a regular schedule (e.g., per pay period) that generally results in buying more shares when prices are low and less shares when they are high.

Dollar-cost averaging is a stabilizing approach. It can take away some of the fear of timing risk and become less of a system shock than lump sum investing. However, this strategy does not ensure a profit and does not protect against loss in declining markets.

You need lemons to make lemonade

Downturns are a perfect time to consult with a financial professional or investment advisor to review different strategies and also rebalance your portfolio. It might be time to look at investments

1 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025.

2 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025.

that have lost value, which can potentially help manage risk exposure and provide an opportunity to reposition the portfolio for recovery.

Another possibility is to consider a Roth conversion. If your plan allows for a Roth conversion - moving money from pretax dollars to Roth dollars - then a downturn could help. A conversion in a downturn might result in a lower tax bill for the same number of shares sold, and then the

individual can experience the benefits of a Roth account, allowing qualified distributions of future growth to be tax free.3

Market downturns are a part of any investing lifecycle so it’s best to keep a steady hand, consult with your advisor and consider all options so you can weather through this market cycle - and the next

one.

Information provided herein is not, and should not be regarded as, investment advice or as a recommendation. Investing involves risk, including potential loss of principal.

________________________________________

The Gasaway Team

Gasaway Investment Advisors

7110 Stadium Dr., Kalamazoo, MI, 49009

Email: info@gasawayinvestments.com

Phone: (269) 324-0080

Website: www.gasawayinvestments.com

This information is provided as a general guide to educate plan sponsors. It is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

________________________________________

Content is for educational purposes only and should not be construed as a solicitation or offer to sell securities or provide investment, tax, or legal advice. Past performance is not indicative of future results. Investing involves risk, including the potential loss of principal. Always consult with a qualified financial advisor before making any investment decisions. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Advisor Public Disclosure

Site https://adviserinfo.sec.gov/firm/summary/123807.

3 Fidelity Viewpoints. “6 Tips to Navigate Volatile Markets.” Fidelity. 6 March 2025.

< Older Post

Newer Post >

7 Simple Steps to Organize Your Financial Life

May 23, 2025

This easy-to-use checklist can help you take charge of your money

April Market Update

May 16, 2025

Our brief April monthly update on the markets and the economy.

Building Relationships That Matter

May 16, 2025

Gasaway Investment Advisors is celebrating its 35th anniversary this year.

What are Super Catch-up Contributions?

May 12, 2025

Supercharge your savings at ages 60-63

March Market Update

April 16, 2025

Our brief March monthly update on the markets and the economy.

February Market Update

March 20, 2025

Our brief February monthly update on the markets and the economy.

January Market Update

February 20, 2025

Our brief January monthly update on the markets and the economy.

December Market Update

January 27, 2025

Our brief December monthly update on the markets and the economy.

How Much Do I Need to Retire: Your Path to Financial Freedom

By Chase Imberger • January 16, 2025

Retirement is a significant milestone, and planning for it is crucial to build a comfortable future. At Gasaway Investment Advisors, we believe that everyone deserves the opportunity to retire with confidence. Why is Retirement Planning Important? Retirement planning is essential for several reasons: Financial Security: It helps you ensure that you have enough money to cover your expenses in retirement. Peace of Mind: Knowing that you are financially prepared for retirement can reduce stress and anxiety. Lifestyle Choices: A well-planned retirement allows you to pursue your passions and enjoy your golden years. How Much Do You Need to Retire? The amount of money you need to retire depends on various factors, including your desired lifestyle, expected expenses, and anticipated income sources. A common rule of thumb is that you'll need 70-80% of your pre-retirement income to maintain your lifestyle in retirement. However, this can vary depending on individual circumstances. Key Strategies for Retirement Planning Start Early: The earlier you start saving, the more time your investments have to grow. Maximize Employer Contributions: Take advantage of employer-sponsored retirement plans like 401(k)s and 403(b)s. Diversify Your Investments: Spread your investments across different asset classes to manage risk. Review and Adjust Your Plan Regularly: As your circumstances change, reassess your retirement goals and adjust your investment strategy accordingly. Gasaway Investment Advisors' Approach to Retirement Planning At Gasaway Investment Advisors, we take a personalized approach to retirement planning. We work with clients to assess their financial situation, set realistic goals, and develop a comprehensive retirement plan. Our services include: Retirement Needs Analysis: We analyze your current financial situation, future expenses, and income sources to determine how much you'll need to retire comfortably. Portfolio Management: We manage your retirement investments to help you achieve your long-term goals. Social Security Optimization: We help you maximize your Social Security benefits. Tax Planning: We can strategize with you to try and minimize your tax burden in retirement. Insurance Planning: We can help you create a comprehensive insurance plan based on your needs. Take Control of Your Financial Future By working with a financial advisor, you can gain valuable insights and make informed decisions about your retirement savings. Remember, the key to a successful retirement is to start planning early and stay disciplined. We’d love to have you join our virtual workshop on Retirement Planning on January 21 st at 5:30 pm and learn more! Contact Gasaway Investment Advisors today to schedule a consultation with an advisor and start planning for your future. The Gasaway Team 7110 Stadium Drive Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834 The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807 .

Why Investing is Important: A Guide for the Future

By Chase Imberger • January 9, 2025

Investing is often seen as a complex and intimidating process, but it's a crucial step towards achieving long-term financial goals. By investing your money, you can harness the power of compound interest, keep up with inflation, and secure your financial future. The Power of Compound Interest Compound interest is a very powerful tool. In short, compound interest is the interest you earn on top of interest you have already made. Over time, this compounding effect can significantly grow your funds. The earlier you start investing, the more time your money has to grow. Overcoming Inflation Inflation erodes the purchasing power of money over time. By investing in assets that can outpace inflation, you can protect your wealth and maintain your standard of living. Achieving Financial Goals Investing can help you achieve various financial goals, such as: Retirement: Investing in retirement accounts like 401(k)s and IRAs can help you save for a comfortable retirement. Homeownership: Investing in assets like stocks and bonds can help you save for a down payment on a home. Education: Investing in education savings accounts can help you save for your children's college education. Gasaway Investment Advisors' Approach to Investing At Gasaway Investment Advisors, we believe in a personalized approach to investing. We tailor our investment strategies to each client's unique financial goals, risk tolerance, and time horizon. Our investment philosophy is based on a diversified approach, which involves spreading your investments across various asset classes to reduce risk. We typically invest in a mix of equities and bonds. We use investment vehicles like mutual funds and ETFs to help achieve more diversification for the funds invested. Investing for Different Age Groups The optimal investment strategy can vary depending on your age and risk tolerance. Here's a general guideline: 18-45: At this stage, you have a long investment horizon, allowing you to take on more risk. Consider investing heavily in equities, such as stocks and equity mutual funds. Market corrections can be seen as an opportunity to buy more shares as things will be priced cheaper. 45-60: As you approach retirement, it's wise to gradually shift your portfolio towards more conservative investments, such as bonds and fixed-income funds. This can help protect your wealth from market volatility. There should still be equity exposure for growth, but not as much as previously. 60-80: As you enter retirement, you may want to further reduce your risk exposure by increasing your allocation to fixed-income investments. However, it's important to maintain a balanced portfolio to generate income and preserve capital. 80+: At this stage, you may want to prioritize income over growth. Consider investing in fixed-income securities, such as bonds and CDs, which can provide a steady stream of income. It's important to note that these are general guidelines, and your specific investment strategy may vary. Consulting with a financial advisor can help with creating personalized investment recommendations and plans that align with your goals, risk tolerance, and time horizons. We invite you to also attend our virtual workshop on Investments on January 14th at 5:30 pm. By starting to invest early and staying disciplined, you can set yourself up for a secure financial future. The Gasaway Team 7110 Stadium Drive Kalamazoo, MI 49009 (269) 324-0080 FAX (269) 324-3834 The views expressed are those of the author as of the date noted, are subject to change based on market and other various conditions. This presentation is not an offer or a solicitation to buy or sell securities. The material discussed is meant to provide general education information only and it is not to be construed as specific investment, tax or legal advice and does not give investment recommendations. Certain risks exist with any type of investment and should be considered carefully before making any investment decisions. Keep in mind that current and historical facts may not be indicative of future results. Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, https://adviserinfo.sec.gov/firm/summary/123807.

Reach Out