The best plan is the one you can stick to when markets get scary. Selling at the bottom is one of the costliest mistakes an investor can make.
Why drops feel worse than they are
Falls are a normal part of investing in growth assets. Over long periods, markets have tended to recover — but the recovery only helped those who stayed invested.
A simple guardrail
Knowing in advance how you would react to a sharp drop helps you avoid panic decisions. A portfolio that fits your comfort makes staying the course far easier.