As investors grow older, the stakes often get higher. Larger amounts of capital are likely invested and there’s less time to recover from mistakes and losses. This makes geopolitical events that create a wave of volatility in the markets an especially difficult time for investors over 50. To help older, more cautious investors know what to be aware of following Russia’s invasion of Ukraine, MarketWatch recently spoke with AlphaCore CEO and Founder Dick Pfister.
Pfister tells the publication that older investors need to realize that inflation is here and will likely remain here for a while. “Inflation is here,” he says. “It’s quite obviously not transitory. It’s here to stay.”
Another important thing that investors over 50 should know is that it is never a good idea to panic and make big changes to your portfolio in times of crisis. “You gotta buy fire insurance before the fire, not after the fire,” Pfister explains. However, if you are set on making changes to your portfolio, make sure you are thinking long-term and not chasing yesterday’s moves. For example, commodities have risen in price but are very volatile. Pfister says investing in commodities now should be a “strategic allocation” for several years. “You need to hold it for a full market cycle,” he says.