CNBC's "Halftime Report" breaks down investment strategies amid the coronavirus pandemic. The economic shock of the coronavirus pandemic has caused unprecedented strife. More than 22 million Americans have lost their jobs, the markets are roiling, and Americans, stressed about all this uncertainty, are left with many unanswered questions. Two of CNBC’s Financial Advisor Council members — Lazetta Rainey Braxton, co-CEO of 2050 Wealth Partners, and Carolyn McClanahan, a certified financial planner and founder of Life Planning Partners — along with Josh Brown, CEO of Ritholtz Wealth Management, listened to viewers and answered their questions on CNBC’s “Markets in Turmoil” Monday night. Here is how these experts responded to viewers’ most pressing concerns.
How do investors determine asset allocation and the level of risk that’s for them?
According to McClanahan, there are two factors that should drive portfolio allocation. The first is, how long do you have before you need to use your money? If you need your money in the near term, meaning that you are approaching retirement age or you recently retired, McClanahan says investors should be consecutive and dial back their risk.
Younger investors who can stomach swings in the market should be more aggressive with their allocations.
Braxton says that now is a good time to figure out your risk tolerance. Investors have had a wide range of reactions to this market. Some might be indifferent to the roller coaster right now, while others are fearful they won’t be able to get through their retirement years. Braxton said to use your reactions as a way to gauge your tolerance and then couple that with your timeline and goals.
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