The investment markets finished 2015 relatively flat. After six consecutive years of positive returns, the U.S. investment markets appear to be slowing down. As I indicated in my article last month, the economy has moved through the recovery phase and is now in the expansion phase. However, investors have not forgotten 2008. They are still fearful and worried about a repeat of that devastating experience. And recent headlines, primarily regarding the market slowing down and interest rates rising, have done nothing to calm investor concerns.

Investors need to understand that during the expansion stage of the economy the U.S. stock markets usually continue to perform. However, the increase in the markets is not usually as abundant as the previous stage, which was the recovery stage. So investors need to focus on prudent risk, to find the value, if they are to have hope of reaching their financial goals. This last point is especially true if the investor is less than a decade from retirement. Pre-retiree’s need to switch from a mind set of accumulation to a mind set of preservation. It’s like being a squirrel with a bad winter coming, you had better store up a lot of nuts.

The “Rule of 100” is a common formula used to ensure savings are never entirely at risk. In the Rule of 100: A person takes their age and then subtracts it from 100. The number that provides is the percentage of assets the person can invest in the stock market. This is just a guideline. To help insure your best opportunity for investment success, consult a financial advisor to determine your proper risk level and investment allocation.

Over the years I’ve taken great pride in helping my clients. I’m kind of selfish, because when my clients are sleeping good, I am also sleeping good. The key is to preserve your assets and ensure you’ve got an adequate buffer to weather tough times and meet your financial needs and goals.