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As the stock market sinks, you’ve probably already heard not to check your 401(k).
Yet when it comes to steering your personal financial plan in a turbulent time, it’s still wise to take a proactive approach, according to Michael Liersch, a behavioral finance expert and global head of wealth planning and advice at JPMorgan Chase.
Generally, people tend to take one of two strategies to uncertain markets, Liersch said. Either they decide on action no matter what or stick to a do-nothing approach.
Those extreme approaches tend to happen when individual investors get too caught up in the short-term news, and forget their long-term time horizon.
“What I always coach investors, clients, advisors to do is really to empathize with themselves,” Liersch said. “If we didn’t feel anxious, that would be unusual.”
Start by acknowledging that emotion, telling yourself it’s OK feel this way, Liersch said. Next, and importantly, remind yourself of your…