Crisis Proof Your Future: Why Your Goals Matter More than the Market

Lately, it seems like there’s a crisis-level news item nearly every day. Much of the panic and uncertainty revolves around the stock market and economy – and how large-scale upsets may affect ordinary people and our finances.

What do market levels mean for my retirement savings? Do I have enough saved to retire? What does inflation mean for my estate plan? Will tariffs affect my small business? What are the safest investments? Should I invest in cryptocurrency? We hear questions like these every day. And while the answers vary for each individual’s situation, our best piece of advice is universal: Focus on your goals first, and only take action based on hard data. Don’t change course in reaction to short-term noise.

People in different life stages will need to react differently to similar circumstances. For example, a younger couple with two incomes and no children will have very different needs and goals than a couple nearing retirement, or someone who is already retired and looking to maintain their lifestyle. Every situation needs a different approach, and not every market upset poses equal risk.

A shift in perspective

Would you plan a vacation without choosing your destination, or start cooking without a meal in mind? Similarly, it’s a mistake to make financial decisions before clearly defining what you want to achieve.

If we’re constantly reacting to every threat and fluctuation, it puts our finances at risk – and sometimes our mental health and relationships as a result. For long-term, sustainable success, use an intentional approach.

Many people come to their investment journey with the single goal of making as much money as possible. While that’s a worthwhile goal, it’s just one of many to balance as you make decisions based on your own situation. The potential for greater returns generally also carries increased risk of loss, which may or may not be appropriate based on your time horizon, stage of life, and other factors. Here’s what that looks like in broad strokes:

• Goals must be realistic, and with the long-term in mind. Even a goal of growth can be approached methodically.
• Be intentional about risk management. Adopt specific and flexible strategies to guard against the unexpected.
• Make thoughtful adjustments as needed to accommodate new circumstances. Be judicious about what to act on and when to watch and wait.

When it comes to our finances, we are fond of saying “We can't control the wind, but we can set the sail.” Working with a trusted partner or advisory team can help guide you through this process, allowing you to stay on offense instead of constantly reacting - and when the time comes be nimbly positioned to adjust.

Need help? We’re here

CWM advisors focus on what we call Real Returns, or the risk-adjusted return necessary for you to achieve your goals. We’ve developed multiple investment models to help target the Real Return that aligns with each person’s individual objectives, tolerance for risk, preference for how they want to experience the market, and life stage. Schedule a complimentary 30-minute meeting with a CWM advisor to explore which strategies suit your specific situation.