Have the ongoing ups and downs of the markets caused you some concern recently?
“One way for New Jerseyans to gain a bit more confidence: sharpen your financial knowledge and skills,” says Brendan Cahill, CFP®, Vice President, Wealth Planner at Fidelity Investments.
No matter what life stage you’re in, there are simple steps you can take to increase your financial literacy and help smooth your path to financial stability and growth potential. The tools and resources offered by Fidelity can better equip investors for the road ahead, regardless of the economic weather of the day.
Market ups and downs can be stressful, but you don’t have to navigate them alone. A qualified professional can help you establish a comprehensive financial plan, assess your progress and guide you.
Make Sense of Market Ups and Downs
The first step in improving your financial literacy is to understand that market fluctuations are a normal part of investing. While fluctuations can feel unsettling in the moment, the market has consistently recovered to deliver long-term gains over time.
Maintaining a long-term perspective helps you see beyond immediate turbulence. Looking at the big picture allows confident investors to view these cyclical ebbs and flows as natural parts of the journey toward your retirement goals.
During times of uncertainty, financial literacy becomes your foundation for making informed decisions. By understanding market fundamentals, maintaining consistency in your savings habits and seeking professional guidance when needed, you can build the financial resilience necessary to thrive—regardless of what uncertainties lie ahead.
Stay Consistent During Turbulent Times
Recent data insights show the benefits of staying the course. Despite market volatility during the first quarter of 2025, Fidelity retirement savers remained remarkably steady with their contribution rates and asset allocation, and subsequently saw 401(k) savings rates reach a record high of 14.3%¹—the closest it’s ever been to Fidelity’s suggested savings rate of 15%.
“Put simply, consistency wins over market timing,” says Cahill. “Rather than adjusting one’s 401(k) contributions against every market fluctuation, disciplined holders who maintain regular contributions often come out ahead.”
Brendan Cahill, CFP®, Vice President, Wealth Planner at Fidelity Investments
Build Your Financial Foundation
Genuine financial resilience requires a comprehensive approach to money management.
Creating an emergency fund that can serve as a safety net will help you avoid the pressure to liquidate investments during inopportune times. Set a goal to save $1,000, then aim to save three to six months’ worth of essential expenses by funding your emergency savings², prioritizing these allocations the same way you would a utility bill or car payment.
Debt management is equally crucial. By actively managing debt obligations, you create more flexibility to adjust for inflation, interest rate changes and employment uncertainty. This breathing room will help you maintain your investment strategy, even when other aspects of your financial life face pressure.
Understand the Value of Knowledge and Professional Guidance
“People make better decisions—in life and with their finances—when they are armed with reliable and helpful information,” says Cahill. “Understanding fundamental concepts like inflation, interest rates, and how stock and bond markets function helps you avoid impulsive decisions based on fear or market noise.”
You don’t have to navigate these waters alone. A qualified financial advisor can help you establish a comprehensive financial plan, assess your progress and guide you through necessary adjustments as your circumstances or market conditions change.
Maintain Perspective for Long-Term Success
The path through uncertainty isn’t about eliminating risk entirely. It’s about understanding potential risks, preparing and making informed decisions that serve your long-term financial well-being. With the right knowledge, strategies, and support, you can navigate any economic environment with confidence.
Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
**Past performance is no guarantee of future results.**
Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information.
The CERTIFIED FINANCIAL PLANNER certification, which is also referred to as a CFP® certification, is offered by the Certified Financial Planner Board of Standards Inc. (“CFP Board”). To obtain the CFP® certification, candidates must pass the comprehensive CFP Certification examination, pass the CFP® Board’s fitness standards for candidates and registrants, agree to abide by the CFP Board’s Code of Ethics and Professional Responsibility, and have at least 3 years of qualifying work experience, among other requirements. The CFP Board owns the certification marks CFP® and CERTIFIED FINANCIAL PLANNER in the U.S.
This information is intended to be educational and is not tailored to the investment needs of any specific investor.
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¹Fidelity Q1 2025 Retirement Analysis, June 2025
²Fidelity Viewpoints, How much to save for emergencies, October 2024
