Scared of a Correction? 3 Things to Do Now

The Dow Jones Industrials and the S&P 500 have hit new highs, but many worry a correction is long overdue. How can you protect yourself against a market downturn?

In this following video, Dan Caplinger, The Motley Fool's director of investment planning, gives three tips for those worried about their portfolios and a possible correction. Dan first suggests assessing your risk, especially if you haven't made any adjustments to your portfolio in recent years. Next, if your risk isn't where you want it to be, look at rebalancing to get your asset allocation in line. Finally, look at individual stock holdings to determine if you have particularly risky stocks and not enough conservative stocks. If you follow those three rules, you'll be in much better shape to preserve your hard-earned money.

How to boost your income during retirement
Retirees rely on Social Security as a key player in your financial security, but it's not the only way to boost your retirement income. In our brand-new free report, our retirement experts give their insight on a simple strategy to take advantage of a little-known IRS rule that can help ensure a more comfortable retirement for you and your family. Click here to get your copy today.

The article Scared of a Correction? 3 Things to Do Now originally appeared on

Dan Caplinger and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story