In anticipation of retirement, you may have put your hard-earned dollars into stocks, mutual funds or a 401(k). Or perhaps you’ve set aside money for a child’s college tuition? During financially turbulent times, it can be unsettling to see the value of those investments drop. By learning how to manage your money and emotions, however, you might feel more confident about your next steps.

Financial planning and investing are learned behaviors that take practice. On the road to your long-term goals, you might take three steps forward followed by two steps back multiple times, perhaps in response to personal or global events.

Rest assured, however, that even confident investors may experience strong feelings when the stock market plunges due to a bear market or a sagging economy.

When managing an investment portfolio that accurately reflects your risk tolerance, long-term goals, retirement timeline and household budget, however, it may be easier to stick to your strategy. Not only might you keep your worries in check, but also you might prevent your emotions from blocking your long-range progress.

Let’s look at three simple strategies to help you manage the emotions that money can spark.

1. Work through your feelings

Accepting uneasiness about finances can be the first step toward letting tension go. Rather than ignoring your emotions, try naming them. Acknowledge them as part of being a human who is simply concerned about the future. Anger, fear, panic — even greed and, yes, joy — may crop up in response to news headlines. And that’s okay.

Dealing with especially strong new emotions? Consider what sparked them. Did an article, rumor, personal health or relationship change fuel a shift within you? Are you in the midst of a career transition? How soon might the feeling(s) pass, based on prior personal experience?

Gradually, as you learn to name and listen to your feelings and emotional triggers, you can start to work toward taking rational next steps.

One thing in particular to watch out for is a significant change in how comfortable you are with investment risk and uncertainty. In fact, your risk tolerance may naturally shift over time, especially as you move toward your retirement transition.

» Tip: Should you notice a significant shift in risk tolerance during your 50s or 60s — or due to big life changes, global events or other shifts, it can be helpful to reach out to your financial advisor for insights. (More on that relationship in a moment!)

2. Develop a healthy mindset

Thanks to smartphones and social media, it’s hard to avoid news about rising inflation, interest rates and market fluctuations. Meanwhile, tracking 24-hour news cycles and loud “experts” can drive just about anyone to question, well, anything.

While it’s important to stay informed, seek out credible media sources. Be skeptical of any show, website or social media feed that appears to thrive on making bold, hyperbolic claims or panic-inducing statements about the market to rev up viewers. Instead, by seeking more measured resources rooted in research, you may reduce your own stress levels about financial matters.

Why? Because our brains absorb incoming stories in ways that can activate the amygdala, the part of your brain that deals with strong emotional responses (including fear, anxiety and aggression).

Part of the primitive limbic system (or our so-called “reptilian brains”) amygdalae fed a steady diet of fear-inducing information can lead us to lose touch with the more “rational” part of our minds. This has the potential to create risk aversion and a fear of loss. When those feelings are acted upon routinely in the context of your financial planning, you may significantly curtail progress on your long-term goals. All the more reason to curate where and how you receive financial news!

» Tip: For your convenience, and as part of our affiliation with Ameriprise Financial Services, RBFCU Investments Group hosts a page dedicated to news, expert research and analysis regarding the markets, economy and investment landscape.¹ Our page can be a useful resource for both new and seasoned investors.

3. Talk with your financial advisor

Emotions are part of being human, as can be the impulse to work collaboratively with someone who shares our vision for the future.

Along those lines, a financial advisor can offer knowledge, skills and resources that you can tap throughout your financial journey. In fact, the more often you meet, the deeper your financial advisor will understand you, your concerns and your goals.

Consequently, when times are tough, he or she can serve as a thoughtful sounding board, especially if you’re considering rebalancing your portfolio. Based on insights and perspectives built on your shared experience, a financial advisor may be able to point you toward additional savings strategies and investment solutions that could help keep you on track with your goals — during bear and bull markets alike.

The takeaway

By better understanding the role that emotions can play in meeting your long-term goals and building a rapport with a financial advisor, you can grow more confident in your overall financial strategy. Ultimately, that may prove to be an important investment in your peace of mind, perhaps for years to come.

Want to talk with someone about your concerns, choices and goals? Our RBFCU Investments Group team is ready to listen.