All markets move up and down so what is the best way to manage the fluctuations?

STAY cool. Gen Xers need to channel Douglas Adams’ advice from Hitchhiker’s Guide to the Galaxy.

“DON’T PANIC!”

Market fluctuations? Schmucktuations.

A Gen Xer’s long-term investment plan, when it comes to The Big Game, needs to accept that a market’s next move is as random as a deck of cards.

With shares and property, there is little certainly … except that they tend to be long-term winners.

In the short term, they could go up, down, a little, or a lot. Today, next week, next year. They’ll occasionally poop themselves. As the Australian market did a bit during April/May.

Gen Xers are in an accumulation phase of life. We’re at the stage when we should be collecting, like footy cards, quality growth assets. Shares and property. As many quality assets as we can possibly throw our money at.

Xers should have Warren Buffett’s “our preferred holding period is forever” timeframe in mind. You’re not a seller. Why would you care whether markets tank a little every now and then?

You’re a buyer. Looking for bargains. A tumble, like we’ve had recently for shares and a few years back for property, is a time to add to the portfolio you’re quietly collecting.

If you don’t see it that way, you’re looking at it wrong.

Do Xers worry when their superannuation takes a bit of a dive? No. Why? Because it’s this thing happening smoothly and automatically in the background.

You need to make your investment habits as automatic as your super. Add to your investments, as automatically as possible. Every. Single. Month.

Bruce Brammall is the principal adviser with Bruce Brammall Financial (www.brucebrammall.com.au) and author of Mortgages Made Easy.