4. Stay on Track
It’s important to look at the progress you’re making toward your goals over time, as opposed to tracking short-term ups and downs. Because of the power of compound growth, investing is just as much about how much time you have as it is about how much money you start with.
Contribute regularly.Even modest contributions, when made regularly, can pay off substantially over the long term. Understand the potential benefits of dollar-cost averaging.
Check in occasionally.
Keep an eye on your investments at least quarterly (or more often if you have a riskier portfolio). Major life events, such as those listed below, may also call for some adjustments.
Stay the course.
Down markets can be unnerving. Successfully managing investments requires a long-term view and a commitment to staying on track. Remember that you may need to occasionally move gains from assets that have done well and put them into those that seem likely to grow soon, a principle known as “rebalancing.”
Staying on track means adjusting your goals as your financial situation changes. At certain points in life, you may need a little extra financial planning advice and guidance. Schwab has extra guidance for:
Keep your finances on track during a job change.
Coming Into New Wealth
Make the most of your new wealth.
Welcoming a New Child
Focus on a new set of priorities.