Have the ongoing ups and downs of the markets caused you some concern recently? Here’s one way for Utahns to gain a bit more confidence: sharpen your financial knowledge and skills.
Understandably, national headlines around market fluctuations and their perceived implications on long-term financial goals can trigger a lot of stress, especially if you are one of the nearly 12% of residents(1) approaching retirement age, or planning and thinking about your retirement.
While volatility affects each aspect of the financial planning process—from wealth management to budgeting, debt and credit—market fluctuation is just one of many uncertainties we face in life that may lead to confusion about how to manage your financial future. 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.
Understanding Market Volatility as Part of the Journey
The first step in improving financial literacy is to understand that market fluctuations are a normal part of investing. History provides valuable perspective: U.S. stocks have experienced three downturns of 5% per year, one correction of 10% per year and one correction of approximately 15% every three years(2). While these fluctuations can feel unsettling in the moment, the market has consistently recovered and delivered 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 that align with your long-term goals. 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.
The Power of Consistency During Turbulent Times
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%(3)—the closest it’s ever been to Fidelity’s suggested savings rate of 15% (this amount includes employee and employer contributions).
Put simply, consistency wins over market timing. Rather than adjusting one’s 401(k) contributions against every market fluctuation, disciplined holders who maintain regular contributions often come out ahead.
Building Your Financial Foundation
Beyond market considerations, genuine financial resilience requires a comprehensive approach to money management. Establishing an emergency fund that can serve as a safety net may 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 savings(4), prioritizing these allocations the same way you would a utility bill or car payment. This cushion provides flexibility to weather unexpected expenses without derailing your long-term financial goals.
Debt management is equally crucial. By actively managing your debt obligations, you create more flexibility to adjust for inflation, interest rate changes and employment uncertainty. This breathing room may help you maintain your investment strategy even when other aspects of your financial life face pressure.
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. 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 – working with a financial professional provides invaluable support. A qualified 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.
Maintaining 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.
The tools and resources offered by Fidelity can better equip investors for the road ahead, regardless of the economic weather of the day.
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.
This information is intended to be educational and is not tailored to the investment needs of any specific investor.
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© 2025 FMR LLC. All rights reserved.
Sources
(1) Labor Department U.S. Census Bureau (2023)
(2) Fidelity Viewpoints, 6 tips to navigate volatile markets, March 2025
(3) Fidelity Q1 2025 Retirement Analysis, June 2025
(4) Fidelity Viewpoints, How much to save for emergencies, October 2024