If you read my articles on MOAA’s website and in Military Officer, you know I prefer using an investment portfolio allocation (diversification) strategy to manage investments.

I choose this method over trying to time investment selections, markets, or various financial sectors. By using broad-market funds, I reduce risk and workload by not picking individual stocks. Data from investor surveys overwhelmingly indicate investors lose by trying to actively manage their portfolios. Trading is not the path to wealth.

Allocation management is easier and less stressful. It uses history and data to expect market cycles eliminating the need to predict the future and better meet your objective.

[RELATED: Investments in a Pandemic: The Lay of the Land]

So, how is your portfolio doing in this crazy investment period? If your allocation is structured properly, your portfolio is doing exactly what it needs to do to achieve your primary objective.

If you are not planning to retire (permanently, not just from uniformed service) any time soon, and you are averaging down (dollar-cost averaging) in your stock-heavy portfolio, you will have a beautiful future.

Sure, your portfolio was down about 35% or so on March 23, but you’re loading up on cheap stocks. Stocks are ownership, and ownership is what creates wealth.

Retired? If your portfolio was more balanced (30% to 50% stocks) to protect your value, your account value dipped about 10% to 15% … and it will rebound nicely when the economy returns. Part of a retiree’s plan should include some cash – one to two years’ worth – to buy you time for a stock market rebound.

Know anyone pulling their hair out now? It's not necessary. Learn more at MOAA’s Finance Page.